Antitrust: NCLAT Suspends Anti.T Ban on WhatsApp-Meta Data Sharing

The National Company Law Appellate Tribunal (NCLAT) has temporarily suspended the five-year ban imposed by the Competition Commission of India (CCI) on WhatsApp's data-sharing practices with Meta. This decision provides relief to Meta, allowing its business model to continue in India, where WhatsApp has over 500 million active users.

The NCLAT bench, led by Justice Ashok Bhushan, directed Meta to deposit 50% of the Rs. 213 crore penalty imposed by the CCI within two weeks. Meta has already paid 25% of the fine.

The ban, impos

ed by the CCI last year, prevented WhatsApp from sharing user data with Meta's other platforms, citing concerns about abuse of a dominant position.

The investigation began in March 2021, focusing on WhatsApp's updated privacy policy, which mandated data sharing with Meta’s companies.

Meta argued that the CCI order could have far-reaching implications for the tech industry and emphasized the need for an urgent resolution. The tribunal noted that upcoming data protection laws in India might address many of the concerns raised.

While WhatsApp’s 2021 privacy policy allows data sharing with Meta and its affiliated companies, users do not have an option to opt out. The case continues to be closely monitored as it highlights significant issues around privacy, regulation, and corporate practices in the digital age.