WhatsApp has said it will fully comply with directions issued by the National Company Law Appellate Tribunal (NCLAT) regarding user consent for sharing data with parent company Meta, even as both firms challenge the ₹213.14 crore penalty imposed on them. The case stems from concerns over WhatsApp’s 2021 privacy policy update and its implications for data sharing with Meta platforms.

The companies have approached the appellate tribunal seeking relief against the monetary penalty, arguing that the order requires legal reconsideration.

Background: 2021 Privacy Policy Controversy

The controversy dates back to WhatsApp’s updated privacy policy introduced in 2021, which outlined how certain user data could be shared with Meta for business integration and advertising-related purposes. The policy triggered widespread debate in India and globally, with regulators examining whether the changes compromised user autonomy and competition norms.

Authorities had raised concerns that the update allegedly created unequal conditions in the digital messaging and advertising ecosystem.

Penalty of ₹213.14 Crore Explained

The ₹213.14 crore fine was imposed following regulatory scrutiny into whether WhatsApp’s data-sharing practices violated competition principles. Regulators argued that users were not given sufficient granular choices regarding consent for data sharing with Meta-owned platforms.

In response, WhatsApp and Meta have contended that their practices are transparent, lawful, and consistent with evolving global privacy standards. The companies maintain that user privacy remains a core priority.

Assurance of Compliance with Tribunal Directions

During proceedings before NCLAT, WhatsApp stated that it would adhere to the tribunal’s directives concerning user consent mechanisms. The company indicated that it is prepared to implement changes if required to ensure clarity and transparency in how data is shared.

Meta has echoed similar sentiments, emphasizing its commitment to regulatory compliance in India while pursuing its legal remedies.

Legal and Industry Implications

The outcome of the appeal is expected to have significant implications for India’s digital ecosystem, particularly in areas concerning data governance, user consent frameworks, and competition law enforcement in the technology sector.

Experts believe the case could set an important precedent for how digital platforms handle data-sharing disclosures and consent structures going forward.

What Lies Ahead

The NCLAT’s final ruling will determine whether the penalty stands, is modified, or set aside. Meanwhile, WhatsApp and Meta continue to defend their position, asserting that their privacy policies comply with applicable laws.

As India strengthens its regulatory oversight over digital platforms, the case underscores the growing intersection of competition law, data protection, and consumer rights in the country’s rapidly expanding tech landscape.