WhatsApp agrees to comply with CCI’s user-consent order

WhatsApp has reportedly told the Supreme Court that it will implement the Competition Commission of India’s (CCI) directions requiring a user-consent-based framework for sharing data with other Meta companies, marking a significant turn in the long-running dispute over its 2021 privacy policy.

According to media reports, a Bench led by Chief Justice of India Surya Kant, along with Justices Joymalya Bagchi and Vipul M. Pancholi, permitted WhatsApp and Meta to withdraw interim applications that had sought to stall enforcement of the National Company Law Appellate Tribunal (NCLAT)’s compliance directions.

Compliance by March 16

Senior Advocate Kapil Sibal, appearing for WhatsApp and Meta, informed the Court that the company has filed an affidavit outlining its data-sharing practices and would adhere to the appellate tribunal’s clarified directions within the stipulated timeline. WhatsApp said it would implement the user-choice framework by March 16 and would not press its plea for interim relief.

Recording the submission, the Court dismissed the interim applications as withdrawn. However, WhatsApp’s main appeal challenging the legality of its 2021 privacy policy remains pending.

The Bench also directed the company to submit a compliance report before the CCI, as required under the NCLAT order.

Background: 2021 Policy Under Scrutiny

The dispute traces back to WhatsApp’s 2021 update to its privacy policy, which required users to accept revised terms in order to continue using the platform. Unlike the 2016 version, which allowed users to opt out of certain data-sharing arrangements with Facebook (now Meta), the revised policy removed that option.

In November 2024, the CCI concluded that the update amounted to abuse of dominance under the Competition Act, 2002. The regulator imposed a ₹213.14 crore penalty on WhatsApp and directed that user data not be shared with Meta companies for advertising purposes for five years.

While the NCLAT later set aside certain findings relating to Meta’s alleged leveraging of dominance in online display advertising, it upheld the monetary penalty imposed on WhatsApp.

Advertising Ban Still in Play

The CCI’s own appeal seeking restoration of the five-year prohibition on data sharing for advertising remains pending before the Supreme Court. The regulator has argued that the case raises core competition law concerns, separate from privacy or data protection issues.

On a previous hearing, the Court had expressed strong reservations about WhatsApp’s “take it or leave it” model, suggesting it appeared coercive in nature.

Wider Implications for Digital Advertising

The case is being closely watched across the technology and advertising sectors. At stake is not only the structure of user consent on messaging platforms, but also the extent to which dominant digital platforms can integrate data across services to strengthen their advertising ecosystems.

With India’s digital economy expanding rapidly, the Court’s eventual ruling could shape how data is collected, combined and monetised across interconnected platforms.

Further hearings on the substantive appeal are awaited.