SC slams Meta in WhatsApp case: "Can’t play with privacy of this country"

New Delhi: The Supreme Court on Tuesday strongly criticised WhatsApp and its parent company Meta over the messaging platform’s 2021 privacy policy, observing that it appeared to follow a “take it or leave it” approach and raised serious concerns about user privacy, as per the news reports.

A Bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice Vipul Pancholi was hearing appeals filed by WhatsApp and Meta against a National Company Law Appellate Tribunal (NCLAT) order that upheld a Rs 213.14 crore penalty imposed by the Competition Commission of India (CCI).

During the hearing, the Court questioned the absence of a clear opt-out mechanism for users and the manner in which information about the policy was communicated. At one point, the Chief Justice remarked that the policy seemed like “a decent way of committing theft of private information”, questioning how users were expected to understand or exercise any choice.

The Bench warned that companies could not undermine the right to privacy of Indian users under the guise of data sharing. The Chief Justice told WhatsApp and Meta that they could not “play with the right of privacy of this country”, adding that consumers had little choice given the platform’s widespread use.

The Court also raised concerns about targeted advertising and the use of user data, with CCI’s counsel submitting that advertising formed the core of the platform’s revenue model. While acknowledging that earning revenue was not illegitimate, the Court indicated that transparency and informed consent were central to the issue.

Senior advocate Mukul Rohatgi, appearing for WhatsApp, offered to file a short affidavit explaining how the privacy policy operates and what data is shared. The Court suggested that WhatsApp place on record a clear explanation of its policy, particularly from the perspective of users who may not be able to understand complex terms.

The matter was adjourned to February 9, with the Supreme Court impleading the Union government as a party and permitting it to file a counter affidavit.

The case traces back to WhatsApp’s 2021 update, which made data sharing with Meta mandatory for continued use of the service. In November 2024, the CCI held that the policy amounted to abuse of dominance and imposed a penalty, along with restrictions on data sharing. While NCLAT later set aside some findings, it upheld the fine, prompting WhatsApp and Meta to approach the Supreme Court.