The National Company Law Appellate Tribunal (NCLAT) has temporarily stayed the Competition Commission of India’s (CCI) five-year ban on data-sharing between WhatsApp and Meta for advertising purposes, providing relief to the tech giant. Meta welcomed the decision, stating that it will assess its next steps while continuing to support businesses and ensure a high-quality user experience on WhatsApp.
In November 2024, the CCI had imposed a Rs 213.14 crore penalty on Meta, citing unfair business practices linked to WhatsApp’s 2021 privacy policy update. The commission’s 156-page order instructed Meta to cease anti-competitive practices and implement corrective measures within a set timeframe. Meta and WhatsApp challenged the order before the NCLAT, which serves as the appellate body for CCI rulings.
The CCI had mandated that WhatsApp refrain from sharing user data with other Meta platforms for advertising for five years. It also required that WhatsApp users should not be compelled to agree to data sharing beyond the core messaging service as a condition to use the app in India. The regulator’s order aimed to address concerns over anti-competitive behavior and ensure fair data usage policies.