NCLAT to hear Meta's appeal on Rs 213 cr CCI penalty over WhatsApp privacy policy

New Delhi: The National Company Law Appellate Tribunal (NCLAT) will hear Meta's appeal against a Rs 213.14 crore penalty imposed by the Competition Commission of India (CCI) on January 16, 2025. 

The fine was levied due to allegations of unfair practices related to WhatsApp's 2021 privacy policy update.

Meta has challenged the CCI's decision, arguing that the privacy policy in question did not alter user privacy settings and was presented as an optional update, providing clarity and transparency regarding data usage. 

The appeal will be heard by a coram led by Justice (retd) Ashok Bhushan.

The CCI had previously ruled that the WhatsApp privacy policy update was implemented on a "take-it-or-leave-it" basis, which they deemed as an imposition of unfair conditions. 

This policy was seen as leveraging WhatsApp's dominant position in the messaging app market to influence user data sharing with Meta's other platforms, thereby potentially affecting competition in the online advertising sector.

The commission's order also included directives for WhatsApp to cease sharing user data collected on its platform with other Meta companies for advertising purposes for the next five years. 

Additionally, WhatsApp was instructed to provide users with clear, in-app options to opt out of any data sharing not directly related to the provision of WhatsApp services.

Meta, through its legal representatives, has expressed disagreement with the CCI's findings. 

Senior Advocates Kapil Sibal and Mukul Rohatgi, representing Meta and WhatsApp, respectively, have emphasised the policy's optional nature and its aim to increase transparency for users. They have urged the tribunal to consider the broader industry impact of such a penalty, arguing that it could set a precedent affecting how companies manage user data in India.