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NCLAT to hear Meta's appeal against ₹213cr fine by CCI
NCLAT will hear the case on January 16

NCLAT to hear Meta's appeal against ₹213cr fine by CCI

Jan 06, 2025
03:17 pm

What's the story

The National Company Law Appellate Tribunal (NCLAT) will hear Meta's appeal on January 16. The appeal challenges a penalty imposed by the Competition Commission of India (CCI) for allegedly abusing market dominance. The CCI had fined Meta ₹213.14 crore over WhatsApp's 2021 privacy policy update, accusing the company of misusing its dominant position in the market.

Urgent appeal

Meta seeks urgent hearing due to case implications

Notably, Meta has sought an urgent hearing from the NCLAT, highlighting the case's far-reaching implications and stakes. The NCLAT bench, headed by Chairperson Justice (Retd.) Ashok Bhushan, has agreed to hear the matter on January 16. Senior Advocates Kapil Sibal and Mukul Rohatgi, appearing for Meta and WhatsApp, respectively, have emphasized the CCI order's industry-wide repercussions.

Regulatory action

Order on WhatsApp's data sharing policy

On November 18, 2024, the CCI ordered WhatsApp to not share user data with other Meta companies or products for advertising purposes for five years. The regulator also ordered that any data shared for non-advertising purposes must be clearly explained in WhatsApp's policy. This includes detailing the type of user data shared with Meta group companies or products and specifying its purpose.

User rights

CCI's stance on user consent and data sharing

The CCI has stressed that user consent must be the bedrock of social media giants' functioning. The regulator also said that sharing WhatsApp user data with other Meta companies or products for purposes other than providing WhatsApp services, shouldn't be a pre-condition for users to access the messaging service in India. This order comes in line with steps taken by other countries to safeguard user data.

Company stance

Meta's response to order and penalty

In light of the CCI's order and penalty, Meta has reiterated that user privacy is a top priority. The company claimed that the 2021 policy update did not impact the privacy of users' personal messages. Meta also clarified that users who did not accept the updated policy could continue using WhatsApp without losing functionality or having their accounts deleted.

Regulatory directives

CCI's directives to Meta and WhatsApp

Along with the penalty, the CCI also issued cease-and-desist directives and behavioral remedies to curb anti-competitive practices. The regulator directed Meta and WhatsApp to improve transparency by clearly explaining the type of data shared with Meta and linking it to specific purposes. They were also instructed to give users an option to opt out of non-service-related data sharing through in-app settings.