NCLAT Lifts Ban on WhatsApp’s Data Sharing, Upholds $25.4 Million Fine on Meta
In a partial relief for Meta Platforms Inc., India’s National Company Law Appellate Tribunal (NCLAT) on Tuesday set aside an antitrust watchdog’s five-year ban that prevented WhatsApp from sharing user data with other Meta entities for advertising purposes. The tribunal observed that the “rationale for the ban was missing altogether,” but maintained that the Competition Commission of India (CCI) was justified in penalizing Meta for abusing its dominant market position.
The CCI had imposed a $25.4 million fine on Meta in November 2024, citing unfair conditions in WhatsApp’s 2021 privacy policy that pushed users to accept new terms or risk losing access to the service. WhatsApp challenged the ruling, arguing that the policy did not compromise user privacy and that personal messages remained end-to-end encrypted. Meta also criticized the CCI for lacking the technical expertise to evaluate the complexities of its platform.
India remains Meta’s largest market globally, with the highest user base across Facebook, Instagram, and WhatsApp. While Meta reviews the written order, it has reiterated its commitment to user privacy and compliance with local regulations, underscoring the growing tension between global tech firms and Indian regulators over data use and competition practices.
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