Meta Gets Relief as NCLAT Stays WhatsApp Data-Sharing Ban, Orders Partial Fine Payment
In a significant relief for Meta, the National Company Law Appellate Tribunal (NCLAT) has paused the five-year ban imposed by the Competition Commission of India (CCI) on WhatsApp's data-sharing practices. However, the tribunal directed Meta to deposit 50% of the ₹213 crore fine within two weeks, adding to the 25% the company has already paid.
The CCI's November 2024 ruling had penalized Meta for allegedly abusing its dominant position through WhatsApp’s controversial 2021 privacy policy update, which required users to accept data-sharing terms or risk losing access to the service.
Meta challenged the decision, arguing that the ban would disrupt WhatsApp’s operations in India. Senior lawyers representing Meta cited upcoming data protection laws and previous Supreme Court rulings allowing data-sharing if users are informed and can delete their accounts. They emphasized that the CCI’s order could be redundant once the new Digital Personal Data Protection Rules, 2025, come into effect later this year.
The tribunal, while reserving its final decision for January 16, acknowledged the potential impact of India’s evolving data protection framework. It remains to be seen how the case unfolds as Meta continues to operate under its existing policy, claiming it aligns with global standards.