NCLAT stays CCI order, lifts ban on WhatsApp's data sharing
What's the story
India's National Company Law Appellate Tribunal (NCLAT) has temporarily lifted a five-year ban that barred WhatsApp from sharing user data with its parent company Meta.
The decision comes as a major win for Mark Zuckerberg's social media giant in its biggest market.
The original ban was imposed by India's antitrust regulator, the Competition Commission of India (CCI), which had accused WhatsApp of abusing its market dominance with its 2021 privacy policy.
Policy dispute
CCI's stance on WhatsApp's privacy policy
In November, the CCI had ruled WhatsApp's "take-it-or-leave-it" privacy update was an abuse of Meta's dominant position.
The regulator argued that this approach forced users to accept expanded data collection without providing an opt-out option.
The CCI had identified Meta as a dominant player in two key Indian markets: "over-the-top" messaging apps through smartphones and online display advertising.
Tribunal's decision
NCLAT's conditions and concerns
While lifting the ban, the NCLAT has ordered Meta to deposit around $12.35 million—half of a larger penalty—within two weeks.
The tribunal, headed by Justice Ashok Bhushan, noted that the five-year ban could have put WhatsApp's business model of providing free messaging services to users at risk.
The next hearing in the case will be held on March 17.
Company statement
Meta's response and future implications
Responding to the NCLAT's ruling, a Meta spokesperson said, "We welcome the NCLAT's decision to grant a partial stay on the Competition Commission of India's (CCI) order."
The company reiterated its commitment to supporting businesses that depend on their platform for growth and innovation.
The case has major implications as India is Meta and WhatsApp's biggest market with over 700 million users every month, Sensor Tower data showed.