WhatsApp’s ‘Take-It-Or-Leave-It’ privacy policy an abuse of dominance, CCI tells NCLAT

The Competition Commission of India (CCI) has reiterated before the National Company Law Appellate Tribunal (NCLAT) that WhatsApp’s dominance in India’s messaging landscape stems from Meta’s scale, resources, and the integration of Facebook, Instagram, Messenger and WhatsApp.

Appearing for CCI, Senior Advocate Balbir Singh argued that no other platform comes close to WhatsApp in terms of user dependence, network effects and cross-platform advantages. He said WhatsApp’s massive user base and daily engagement make switching nearly impossible, as users would need to convince entire contact networks to move to alternatives.

He further noted that integration across Meta platforms amplifies WhatsApp’s power, drawing in advertisers, developers and businesses, leaving rivals like Telegram and Signal unable to challenge its market position.

Singh stressed that WhatsApp abused this dominance by enforcing its 2021 privacy update on a “take it or leave it” basis. Notifications framed the update as mandatory, removing the limited opt-out safeguard previously available. “Users, fearful of losing access to a vital communication tool, were left with little choice but to comply,” he said.

The CCI counsel added that the policy enabled extensive data collection and integration across Meta’s ecosystem, describing it as “a textbook case of exploitative abuse.” He also highlighted the disparity between Indian and European users, noting that EU users enjoy stronger protections such as data rectification and erasure.

Responding to WhatsApp’s claim that privacy is a matter of data protection, Singh countered: “In digital markets, where services are offered at no monetary cost, data itself becomes the price. A reduction in privacy is, therefore, equivalent to a decline in service quality.”

In November 2024, CCI imposed a ₹213.14 crore penalty on Meta and restricted WhatsApp from sharing user data for five years. The order has been challenged, with NCLAT granting an interim stay in January 2025. Final rejoinder arguments from WhatsApp’s counsel are expected later this week.