Meta Contests Rs 213.14-Cr CCI Fine Over WhatsApp's Privacy Policy In NCLAT. Hearing Will Take Place On This Date

WhatsApp was barred from sharing user data collected in India with other Meta entities for five years and was instructed to explicitly clarify the purpose of any data-sharing practices.

The dispute dates back to January 2021, when WhatsApp unveiled a privacy policy mandating users to accept data-sharing terms with its parent company.

Source : Unsplash/Dima Solomin

Meta Platforms, the parent company of Facebook and WhatsApp, has approached the National Company Law Appellate Tribunal (NCLAT) to contest a Rs 213.14 crore fine imposed by the Competition Commission of India (CCI). The penalty relates to allegations of market dominance abuse linked to WhatsApp's controversial 2021 privacy policy update.

As per a report by Bar and Bench, senior legal representatives for Meta and WhatsApp requested NCLAT Chairperson Justice Ashok Bhushan (Retd) to oversee the proceedings personally.

Justice Bhushan, along with Technical Members Barun Mitra and Arun Baroka, has scheduled the hearing for January 16.

What's The Dispute About?

The dispute dates back to January 2021, when WhatsApp unveiled a privacy policy mandating users to accept data-sharing terms with its parent company, Meta. Unlike its 2016 policy, which allowed users to opt-out, the new update required compliance to continue using the platform. The policy triggered widespread backlash over concerns of reduced user autonomy and increased data collection.

In November 2022, the CCI ruled that WhatsApp's "take-it-or-leave-it" policy structure constituted an abuse of Meta's dominant position in the Indian markets for smartphone messaging and online advertising. The regulator’s investigation concluded that the mandatory nature of the policy undermined consumer choice, violating provisions of the Competition Act, 2002.

CCI's Corrective Measures

In addition to the monetary penalty, the CCI issued several corrective measures. WhatsApp was barred from sharing user data collected in India with other Meta entities for five years and was instructed to explicitly clarify the purpose of any data-sharing practices in its privacy policy. Furthermore, the platform was directed to avoid making data-sharing agreements a prerequisite for users to access its services, especially for advertising purposes.

Meta's appeal in NCLAT marks the latest development in the ongoing legal battle over data privacy and market practices in India. The outcome of the January 16 hearing is expected to have significant implications for both users and the regulatory landscape.