India’s NCLAT Rules on WhatsApp Data-Sharing and Meta Fine
In a pivotal decision, India’s National Company Law Appellate Tribunal (NCLAT) has lifted the ban on WhatsApp’s data-sharing practices with parent company Meta (formerly Facebook) but upheld a ₹225 crore ($27 million) fine for violating competition laws. The ruling highlights India’s tightening scrutiny of Big Tech amid debates over data privacy, antitrust regulations, and corporate dominance.
Background: WhatsApp’s Controversial Privacy Policy
The conflict began in 2021 when WhatsApp updated its privacy policy, requiring users to consent to sharing data with Meta for targeted ads and business services. Privacy advocates and India’s Competition Commission (CCI) argued the policy was coercive and violated user rights.
The CCI:
– Imposed a provisional ban on data-sharing.
– Fined Meta ₹225 crore ($27M) for anti-competitive practices.
WhatsApp and Meta appealed, claiming the CCI overstepped its authority and that data-sharing was crucial for business operations.
Why the NCLAT Lifted the Ban but Kept the Fine
- Ban Overturned: The tribunal ruled the CCI’s ban was premature, as WhatsApp hadn’t enforced the policy due to pending legal challenges.
- Fine Upheld: The NCLAT agreed Meta abused its dominance by forcing users into an “all-or-nothing” agreement, given WhatsApp’s 500M+ user base in India.
Mixed Reactions from Experts
✅ Tech Industry: Supports the decision, citing the need for data-driven innovation.
❌ Privacy Advocates: Fear weakened user consent rights under India’s upcoming Digital Personal Data Protection (DPDP) Act, 2023.
Apar Gupta (Internet Freedom Foundation):
“Users should control their data without losing access to essential services.”
What’s Next for WhatsApp and Meta?
- The Delhi High Court is still reviewing the policy under India’s DPDP Act.
- If ruled illegal, WhatsApp may have to revise its data practices.
- The upheld fine signals stricter antitrust enforcement against Big Tech in India.
India’s Tech Regulation at a Crossroads
This case reflects India’s growing assertiveness in regulating tech giants. Key questions remain:
– Will India adopt GDPR-like strict rules or a U.S.-style flexible approach?
– How will the DPDP Act reshape data governance?
Final Takeaway: While WhatsApp users face uncertainty, India’s regulators are making it clear—Big Tech must comply or face consequences.
Stay updated with NextMinuteNews for more developments.
