Meta appeals ₹213 Crore CCI Penalty in NCLAT

The National Company Law Appellate Tribunal (NCLAT) will hear Meta's plea challenging the ₹213 crore penalty imposed by the Competition Commission of India (CCI). The penalty stems from allegations of Meta abusing its dominant position through WhatsApp’s controversial 2021 privacy policy update.

The CCI had penalized Meta over concerns that the privacy policy update allowed WhatsApp to share user data with Meta-owned platforms for advertising purposes. As part of its ruling, the CCI ordered WhatsApp not to share any user data with Meta’s other businesses for five years. It also mandated WhatsApp to submit a detailed explanation of the user data shared, clearly stating the purpose of such actions.

Meta has consistently defended its stance, emphasizing that user privacy remains a top priority. The company clarified that the 2021 policy update did not compromise the privacy of users’ personal messages. Additionally, Meta asserted that WhatsApp users who chose not to accept the updated terms could continue using the platform without losing functionality or facing account deactivation.

The NCLAT bench, chaired by Justice (Retd.) Ashok Bhushan, acknowledged the significance of the case and agreed to an urgent hearing. Senior advocates Kapil Sibal and Mukul Rohatgi, representing Meta, argued the critical nature of the matter and secured expedited consideration.

WhatsApp’s 2021 privacy policy update had faced widespread backlash, with many alleging that it undermined user privacy by enabling data sharing across Meta’s platforms. This prompted regulatory probes in multiple jurisdictions, including India. The CCI’s penalty is one of the most notable outcomes of these investigations.

The NCLAT’s decision in this case will likely set a precedent for regulating tech giants in India, particularly concerning user data and privacy. It also highlights the growing tension between regulatory authorities and large technology companies over data practices and competition. As the hearing progresses, the spotlight remains on Meta’s legal strategies and the tribunal’s stance on balancing innovation, user privacy, and competition.