Key Takeaways
- Indian tribunal lifts 5-year ban on WhatsApp data sharing with Meta
- Upholds $25.4 million fine against Meta for anti-competitive practices
- Ruling marks partial victory for Meta in crucial Indian market
An Indian appeals tribunal has delivered a mixed verdict in Meta’s legal battle with antitrust regulators, lifting a ban on WhatsApp data sharing while maintaining a substantial fine against the tech giant.
The National Company Law Appellate Tribunal (NCLAT) on Tuesday set aside the Competition Commission of India’s five-year prohibition preventing WhatsApp from sharing user data with other Meta companies for advertising purposes. However, the tribunal upheld the $25.4 million penalty originally imposed by the CCI.
Legal Challenge and Tribunal Reasoning
WhatsApp had challenged the CCI’s November 2024 ban, warning that the restriction could force the platform to roll back certain features. The NCLAT lifted the data-sharing prohibition, stating that “the rationale for the…ban was missing altogether.”
Meta had previously criticized the Indian antitrust watchdog for lacking the “technical expertise” to understand the implications of its order.
Abuse of Dominance Finding Stands
Despite lifting the data-sharing ban, the tribunal agreed with the CCI’s finding that Meta abused its dominant market position by imposing unfair conditions on users. The case originated in 2021 during widespread criticism of WhatsApp’s privacy policy updates.
The CCI’s investigation had found that WhatsApp’s policy effectively forced users to accept the changes or risk losing access to the service entirely.
Meta’s Response and Market Significance
“While we evaluate the written order, we continue to reiterate that WhatsApp’s 2021 privacy policy update did not change the privacy of people’s personal messages which remain end-to-end encrypted,” a Meta spokesperson told Reuters.
The ruling carries significant weight as India represents Meta’s largest market globally, with the highest number of users across Facebook, Instagram, and WhatsApp platforms.
