WhatsApp privacy case: CCI seeks clarity on data-sharing safeguards after NCLAT ruling

The Competition Commission of India (CCI) has approached the National Company Law Appellate Tribunal (NCLAT) seeking clarity on the privacy safeguards that apply to data sharing between WhatsApp and its parent company Meta, following the tribunal’s recent decision to set aside a five-year prohibition on sharing user information for advertising. The move comes barely weeks after NCLAT’s November 4 ruling, which removed the long-term bar but upheld the penalty of ₹213.14 crore and several behavioural conditions previously imposed by the regulator.

In its November 18 application, the CCI has asked whether the principles highlighted in the judgment such as user consent, transparency, and the unified consent framework, extend equally to data used for targeted advertising. The regulator has pointed out that language in the ruling could suggest a uniform standard across both advertising and non-advertising data, a determination that would influence how platforms structure their consent mechanisms.

A Bench led by NCLAT Chairperson Justice Ashok Bhushan and technical member Arun Baroka issued notice on the plea and granted Meta and WhatsApp time to file their responses. The matter is scheduled for further hearing on December 2. The tribunal has also sought replies on a separate request from the companies seeking redaction of confidential sections of the November 4 judgment.

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The dispute stems from WhatsApp’s 2021 privacy policy update, which made data sharing with Meta group entities mandatory and removed users’ ability to opt out. The CCI took suo motu note of the update, observing that it undermined user autonomy and constituted a “take it or leave it” choice. In November 2024, it imposed a ₹213.14-crore penalty and restricted WhatsApp and Meta from sharing data for five years, a direction that was stayed by NCLAT in January 2025 on grounds that it could disrupt WhatsApp’s free-to-use model.

While the appellate tribunal has upheld the fine and reaffirmed CCI’s authority to examine data-linked market conduct, it lifted the blanket ban on advertising-related data flows, stating that adequate user choice and transparency could offer an alternative safeguard. The clarification plea now places the spotlight on how these conditions will apply in practice as the platforms resume broader integration of data within Meta’s systems.