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NCLAT lifts CCI’s five-year ban on WhatsApp data sharing with Meta; ₹213 crore penalty retained
New Delhi: The National Company Law Appellate Tribunal (NCLAT) has set aside a section of the Competition Commission of India’s (CCI) order that had banned WhatsApp from sharing user data with Meta Platforms for advertising purposes for five years.
While modifying the order passed by the CCI on November 18, 2024, the NCLAT set aside Section 247.1 of the 158-page order. However, the tribunal has retained the ₹213 crore penalty imposed on the company for anti-competitive practices related to WhatsApp’s 2021 privacy policy update.
A two-member NCLAT bench comprising Chairperson Justice Ashok Bhushan and Member Arun Baroka said:
“We are setting aside the findings of the Commission insofar as it holds breach of Section 4(2)(D) and setting aside the directions in paragraph 247.1, which stated that WhatsApp shall not share user data collected on its platform with other data companies or for advertising purposes for a period of five years from the date of receipt of this order.”
The bench clarified that except for this modification, the rest of the CCI’s order remains in effect.
A detailed copy of the judgment is awaited. Earlier in September, the NCLAT had reserved its decision after hearing petitions filed by Meta Platforms and WhatsApp challenging the CCI’s November 2024 order.
The CCI had imposed a ₹213.14 crore penalty on Meta for alleged unfair business practices linked to WhatsApp’s 2021 privacy policy. The regulator had also directed Meta to cease anti-competitive behavior and implement specific behavioral remedies to address concerns.
Among its directives, the CCI had barred WhatsApp from sharing user data collected on its platform with other Meta companies or their products for advertising purposes for five years. It also stated that data sharing for non-service purposes should not be made a condition for accessing WhatsApp services in India.
Although the NCLAT has now lifted the five-year ban, the ₹213 crore penalty remains in place, and Meta and WhatsApp are expected to comply with the remaining provisions of the CCI’s order.
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