NCLAT Reserves Order in WhatsApp–Meta Privacy Case

The National Company Law Appellate Tribunal (NCLAT) on Thursday reserved its order on appeals filed by Meta Platforms and WhatsApp, after concluding hearings on challenges to a Competition Commission of India (CCI) penalty relating to the 2021 WhatsApp privacy policy update.

At the core of the case is CCI’s finding that the 2021 policy required users to accept new terms on a “take it or leave it” basis , making continued use of WhatsApp contingent on sharing information with Meta companies. This, the regulator argued, effectively removed the opt-out feature introduced in 2016 , when users were allowed to decline use of their data for advertising and product development by Meta. By eliminating that option, CCI said, WhatsApp abused its dominant position and restricted consumer choice.

In its detailed 156-page order dated November 18, 2024, the CCI imposed a ₹213.14 crore penalty on Meta and directed WhatsApp to cease sharing user data with Meta group entities for advertising for five years . It also barred making data-sharing a condition for accessing WhatsApp services in India.

Meta and WhatsApp challenged the ruling before NCLAT, which in January 2025 stayed the five-year data-sharing ban pending appeal.

During the final round of arguments, Senior Advocate Balbir Singh for CCI reiterated that WhatsApp’s conduct was coercive and anti-competitive, and said competition law and data protection law serve complementary roles in protecting public interest. Meta’s counsels, Senior Advocates Arun Kathpalia and Amit Sibal, countered that CCI relied on inaccuracies, failed to address their submissions, and overlooked the limited nature of data sharing between WhatsApp and Meta.