NCLAT eases CCI curbs on Meta, WhatsApp data-sharing ban revoked

The National Company Law Appellate Tribunal (NCLAT) has provided partial relief to Meta Platforms Inc. and its subsidiary WhatsApp, setting aside key directions issued by the Competition Commission of India (CCI) that restricted data sharing with Meta group companies for advertising purposes.

The Bench, led by Justice (retd) Ashok Bhushan and Barun Mitra, reversed the CCI’s findings that Meta had leveraged its dominant position in the over-the-top (OTT) messaging space to strengthen its presence in online advertising. However, the Tribunal upheld the ₹213.14 crore penalty imposed by the CCI in November 2024, concluding that WhatsApp’s 2021 privacy policy constituted an abuse of dominance.

“We welcome the NCLAT’s decision. While we await 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. WhatsApp’s optional business features make people’s lives more convenient with services like bill payments, ticket booking, and shopping – while supporting local businesses and furthering India’s digital economy,” shares Meta spokesperson.

The CCI had earlier held that the policy imposed “take-it-or-leave-it” terms, limiting user choice and autonomy under the Competition Act, 2002. Its order had directed WhatsApp to cease sharing user data with Meta for five years and to ensure purpose-specific transparency for every data category collected.

Meta and WhatsApp later challenged the order before the NCLAT, which stayed both the penalty and data-sharing restrictions in January 2025, noting potential disruption to WhatsApp’s business model. The Tribunal’s final ruling now lifts the data-sharing ban but maintains the financial penalty.

The decision represents a key moment in India’s evolving debate over data privacy, market power, and digital governance, underscoring the growing scrutiny of global technology companies operating in the country.