NCLAT halts CCI's Five-Year Ban on WhatsApp's Data sharing with Meta

The National Company Law Appellate Tribunal (NCLAT) has stayed the Competition Commission of India's (CCI) five-year ban on WhatsApp's data-sharing arrangement with Meta companies, marking a crucial development in the ongoing legal battle.

In November 2024, the CCI imposed the ban, citing concerns over WhatsApp's revised privacy policy, which permitted data sharing with Meta for targeted advertising purposes. The regulatory body also slapped a hefty fine of ₹213.14 crore on Meta, accusing it of abusing its dominant market position.

However, in a recent ruling, NCLAT decided to put the ban on hold, expressing apprehensions that such a restriction could jeopardize WhatsApp's operational viability in India. The tribunal also highlighted the fact that the Supreme Court had not issued an interim stay against WhatsApp's contentious 2021 privacy policy update.

Following the stay order, WhatsApp can continue its data-sharing practices with Meta companies for now. Nevertheless, the tribunal has directed WhatsApp to deposit 50% of the imposed penalty, which will be reimbursed if Meta secures a favorable verdict in the ongoing proceedings.

The case is set for its next hearing on March 17, 2025, and has garnered significant attention from the tech industry and regulatory bodies alike. The ruling comes as a major relief for Meta, as it allows the company to sustain its existing business model in one of its largest markets.

Case Overview:

• Case Name: WhatsApp LLC vs. Competition Commission of India
• Judicial Body: National Company Law Appellate Tribunal (NCLAT)
• Next Hearing Date: March 17, 2025

Industry experts are closely monitoring the case's outcome, which could have far-reaching implications on data privacy regulations and competition laws in India. For now, WhatsApp users in the country will see no immediate changes to their experience, as the platform continues to function under the existing privacy framework.