WhatsApp privacy case: NCLAT lifts CCI’s 5-year data-sharing ban but retains penalty

The case dates back to November 2024, when the CCI concluded that WhatsApp had abused its dominant position by mandating users to accept its 2021 privacy policy update

by e4m Staff
Published: Nov 5, 2025 3:39 PM | 1 min read

In a major development in the ongoing case surrounding WhatsApp’s 2021 privacy policy, the National Company Law Appellate Tribunal (NCLAT) has partly set aside the Competition Commission of India’s (CCI) order against Meta Platforms and its messaging service WhatsApp. The tribunal upheld the ₹213.14 crore penalty imposed by the CCI but struck down two key elements — the finding that WhatsApp held a dominant market position and the five-year ban on sharing user data with Meta for advertising.

The case dates back to November 2024, when the CCI concluded that WhatsApp had abused its dominant position by mandating users to accept its 2021 privacy policy update, which required data sharing with Meta companies. The regulator had also directed WhatsApp to stop sharing user data for advertising for five years.

However, the NCLAT bench, led by Justice Ashok Bhushan and Technical Member Arun Baroka, ruled that the CCI had exceeded its powers under Section 4(2)(e) of the Competition Act. It observed that restrictions on data sharing fall outside the regulator’s jurisdiction.

While maintaining the penalty, the tribunal modified the CCI’s November 2024 order, lifting the restriction on user data sharing. Meta and WhatsApp had both contested the original CCI ruling, arguing that the ban would impact the free-to-use model and hinder service innovation. A detailed written order from the tribunal is awaited.