The National Company Law Appellate Tribunal (NCLAT) on Thursday stayed a five-year data-sharing ban imposed by competition watchdog CCI over data-sharing practices for advertising purposes between WhatsApp and its parent company Meta, giving the tech giant some breathing space. Ta.
Meta has challenged the Competition Commission of India (CCI) directive issued in November 2024 imposing a ban on data sharing between WhatsApp and other Meta entities for advertising purposes, imposing restrictions on some features. It warned that it might have to be rolled back. It also imposed a core fine of Rs 213 on Mehta for abusing his “dominant position”. The CCI also concluded that WhatsApp’s 2021 privacy policy update unfairly forces users to consent to extensive data collection and its sharing within metagroups.
NCALT suspended the ban while hearing Mehta’s challenge to the antitrust ruling. NCLAT is scheduled to next hear the case on March 17.
Mehta welcomed “NCLAT’s decision to partially suspend the Competition Commission of India (CCI) order” and said the company would consider next steps.
A Meta spokesperson said: “While we evaluate our next steps, we are committed to supporting the millions of businesses that rely on our platform for growth and innovation and delivering the high-quality experience people expect from WhatsApp. We remain focused on finding a way forward to deliver.”
In November, the CCI imposed a fine of Rs 213.14 million on social media giant Meta for unfair commercial practices over WhatsApp’s 2021 privacy policy update.
Meta Platforms and WhatsApp challenged the order before NCLAT, the appellate authority against the order passed by the CCI.
In a 156-page order, the CCI directed Mehta to desist from anti-competitive conduct dated November 18, 2024.
According to the CCI order, Meta and WhatsApp are also required to implement certain behavioral remedies within a stipulated time frame to address the anti-competitive issues.
The regulator called for various remedial measures, including a five-year ban on WhatsApp from sharing data collected on its platform with other meta companies or products of meta companies for advertising purposes.
Among other instructions, the CCI states that sharing user data collected on WhatsApp with other meta companies or products of meta companies for any purpose other than providing the WhatsApp service is prohibited when a user accesses the WhatsApp service in India. He said that it should not be made a condition for
