WhatsApp Privacy Policy Case: NCLAT To Hear Meta's Plea Against Rs 213-Crore CCI Penalty On January 23
Meta NCLAT Hearing: The CCI penalty stems from allegations of abuse of dominance linked to WhatsApp's 2021 privacy policy update.
Meta, WhtasApp Plea: The National Company Law Appellate Tribunal (NCLAT) has admitted an appeal by Meta Platforms on Thursday, challenging a Rs 213 crore fine imposed by the Competition Commission of India (CCI). The penalty stems from allegations of abuse of dominance linked to WhatsApp's 2021 privacy policy update. The tribunal is scheduled to hear the matter on January 23.
Mark Zuckerberg's Meta, formerly known as Facebook, approached NCLAT earlier this month, seeking an urgent hearing. The appeal highlights the significant implications of the case, particularly concerning the company's handling of user data and its impact on competition.
WhatsApp's Privacy Policy Under Scrutiny
The CCI has raised concerns over WhatsApp's 2021 privacy policy, which it claims lacks transparency and does not adequately secure users' voluntary consent. The regulator noted that such practices might enable excessive data collection, potentially leading to consumer "stalking" for targeted advertising and driving user acquisition. These actions, according to CCI, constitute an abuse of the company's market dominance.
The anti-trust body also pointed out that users were not given sufficient options to opt out of specific data-sharing practices. It argued that reduced consumer data protection and diminished control over personal information could amount to a drop in quality, violating competition laws.
Legal Challenges Delay CCI Investigation
The CCI launched an investigation into WhatsApp's privacy policy in early 2021, following reports suggesting its potential risks to user data security. However, legal challenges by Meta and WhatsApp have delayed progress. Both companies argued that the privacy policy issue was already under consideration by the Delhi High Court and the Supreme Court.
Despite these arguments, a single-judge bench in April 2021 declined to halt the investigation, allowing the CCI to proceed. The regulator, however, informed the court that its inquiry faced significant delays due to pending legal responses from Meta and WhatsApp.
The upcoming NCLAT hearing will determine whether Meta secures temporary relief from the CCI's order while the broader case unfolds.
Top Headlines
