Meta approaches SC against NCLAT order upholding Rs 213 crore CCI penalty on WhatsApp

New Delhi: Meta Platforms and WhatsApp have approached the Supreme Court challenging the National Company Law Appellate Tribunal’s (NCLAT) decision that upheld a Rs 213.14 crore penalty imposed by the Competition Commission of India (CCI) over WhatsApp’s 2021 privacy policy update, according to Bar and Bench.

The appeal places the NCLAT’s findings in the WhatsApp–CCI dispute under scrutiny before the apex court, including conclusions relating to abuse of dominance and the sharing of user data with other Meta group entities.

In November 2024, the CCI held that WhatsApp’s 2021 privacy policy constituted an abuse of dominance under the Competition Act, 2002. The regulator found that the policy followed a “take-it-or-leave-it” approach, compelling users to consent to expanded data sharing with Meta companies as a condition for continued access to the messaging service.

The CCI imposed a penalty of Rs 213.14 crore on Meta Platforms and issued multiple remedial directions. These included prohibiting WhatsApp from conditioning access to its services in India on data sharing with Meta group entities, requiring clear opt-in and opt-out mechanisms for users, and mandating transparent disclosures regarding the nature and purpose of data sharing.

Meta and WhatsApp challenged the CCI’s order before the NCLAT. In January 2025, the appellate tribunal stayed both the monetary penalty and the CCI’s five-year ban on data sharing, observing that such a prohibition could disrupt WhatsApp’s business model, given that the platform is offered free of charge to users.

In its final judgment delivered in November 2025, the NCLAT partly ruled in favour of WhatsApp by setting aside the CCI’s finding that Meta had leveraged its dominance in the OTT messaging market to safeguard its position in online display advertising. However, the tribunal upheld the Rs 213.14 crore penalty imposed by the competition regulator.

Following a clarification application filed by the CCI, the NCLAT reinstated the regulator’s user-choice safeguards and granted WhatsApp three months to comply with the remedial directions.