NCLAT admits Meta's appeal against CCI's data-sharing ban, ₹213cr fine
What's the story
The National Company Law Appellate Tribunal (NCLAT) has admitted Meta's appeal against a Competition Commission of India (CCI) ruling.
The CCI had banned Meta's data-sharing practices for five years and imposed a hefty fine for allegedly abusing its dominant market position.
The tribunal, led by Justice Ashok Bhushan, said the matter needed further examination. A decision on Meta's interim relief plea is due on January 23.
Appeal details
Meta challenges CCI's ruling on data-sharing practices
Meta filed the appeal on Monday, challenging the CCI's November 18 ruling.
The order imposed a penalty of ₹213.14 crore for allegedly abusing Meta's dominant position over a controversial update to the privacy policy of its WhatsApp messaging service in 2021.
The CCI's ruling also imposed a five-year ban on Meta sharing user data with other platforms.
Legal arguments
Meta's defense cites upcoming data protection rules
During the hearing, senior advocates Kapil Sibal and Mukul Rohatgi, appearing for Meta, cited statements made by Union Minister of Electronics and Information Technology Ashwini Vaishnaw.
The minister had recently announced that the new Digital Personal Data Protection Rules, 2025, would come into force by mid-2025.
The defense contended that the CCI order could not be enforced until the new rules come into force as its directive would override pending legislation.
Stay request
Meta seeks stay on CCI order, cites previous policies
Sibal argued for an absolute stay on the CCI order until the SC decides on privacy and statutory rules.
He said, "The balance of convenience is in my favor. I have been operating under this policy for years."
Sibal further questioned why the order should operate at all, at least until new rules come into effect.
Business implications
Meta expresses concerns over data-sharing ban impact
In its petition to the NCLAT, Meta expressed concerns over the data-sharing ban's potential impact on its ability to serve personalized ads on Facebook and Instagram.
The company said Indian businesses, like fashion retailers, would find it difficult to personalize ads based on WhatsApp interactions.
The company also argued that the CCI's remedy could force it to roll back/ pause several features and products, jeopardizing its commercial viability in India.