The National Company Law Appellate Tribunal (NCLAT) has reserved its verdict on appeals filed by Meta Platforms and its subsidiary WhatsApp, challenging a probe initiated by the Competition Commission of India (CCI). The case revolves around alleged anti-competitive practices tied to WhatsApp’s controversial 2021 privacy policy update, which mandated extensive data-sharing with parent company Meta.
Case Background
In 2021, the CCI ordered an investigation into WhatsApp’s updated terms of service, citing concerns that users were being forced into a “take-it-or-leave-it” choice without adequate consent options. The regulator argued that mandatory data-sharing with Meta could undermine user privacy while strengthening the company’s dominance in digital advertising and communication services.
Meta and WhatsApp’s Arguments
Both Meta and WhatsApp have consistently argued that the CCI’s intervention overlaps with ongoing judicial scrutiny before the Supreme Court and the Delhi High Court. Their legal teams stressed that privacy issues fall within the domain of constitutional courts, not competition regulators. They also maintained that users retain the option to delete their accounts if they disagree with the policy.
CCI’s Stand
The CCI has defended its jurisdiction, asserting that the case is not merely about privacy but about abuse of dominance and potential market distortion. It emphasized that Meta and WhatsApp’s conduct could restrict competition by leveraging user data across platforms like Facebook, Instagram, and WhatsApp to create unfair advantages in digital advertising.
What’s Next?
With the hearing now concluded, the NCLAT will deliver its order in the coming weeks. The ruling is expected to have significant implications for Big Tech companies operating in India, especially regarding how data-sharing and user consent are regulated under competition law.