By Sanjay Raman Sinha
When the Competition Commission of India (CCI) slapped a Rs 213.14 crore penalty on WhatsApp and Meta for anti-competitive practices, it set in motion a legal confrontation that could redefine the privacy rights of Indian users. At stake is not just a fine, but the future of how global tech giants treat consumer data in one of their largest markets.
The National Company Law Appellate Tribunal (NCLAT) is now hearing the appeal filed by Meta and WhatsApp. Its verdict could tilt the balance between corporate power and user privacy in India’s digital economy.
THE CASE AGAINST WHATSAPP
The controversy began in 2021, when WhatsApp introduced an updated privacy policy mandating extensive data sharing with Meta companies. Users had to either accept the new terms or lose access. Critics said this “take it or leave it” approach exploited WhatsApp’s dominance, leaving consumers with no real choice.
The CCI ruled that such coercive tactics violated competition law. It also noted that WhatsApp had one privacy standard for Europe and another, weaker one, for Indian users—raising concerns of discriminatory treatment.
GOVERNMENT AND REGULATORY PUSHBACK
The Indian government flagged WhatsApp’s opaque data practices and lack of user control. The CCI found that Meta’s ad-based ecosystem was being strengthened through invasive cross-platform data sharing, effectively entrenching its market dominance.
As a corrective, the CCI directed WhatsApp to halt sharing user data with Meta for advertising purposes for five years and to give users a genuine choice over data sharing.
APPEAL AND PARTIAL RELIEF
Meta and WhatsApp challenged the order at NCLAT, which granted partial relief by staying the data-sharing ban for advertising, while still requiring a 50 percent deposit of the penalty. The Tribunal reasoned that an outright ban could disrupt WhatsApp’s business model.
BIGGER PICTURE: PRIVACY AS COMPETITION
The CCI’s ruling is historic for recognizing privacy as integral to competition law. It aligns with India’s broader efforts to build a robust privacy shield under the Digital Personal Data Protection (DPDP) Act, 2023. Yet, with Big Tech continuing to test regulatory limits, the case highlights the urgent need for stronger enforcement.
As the Supreme Court has underlined, the right to privacy is “more valuable than company interests”. The NCLAT’s final word could determine how firmly India upholds that principle in the age of surveillance capitalism.
POINTERS ON NCLAT ORDER
- NCLAT stays CCI’s order on WhatsApp data sharing for ads.
- NCLAT upholds CCI’s order on WhatsApp’s data sharing opt-out option for non-advertising purposes.
- NCLAT stays penalty, mandates 50 percent deposit of penalty amount.
WHATSAPP’S DATA CRAWL
- User data: account info, messages, contacts, support details.
- Auto-collected data: usage, logs, device, cookies.
- Third-party data: information from partners and service providers.
Sanjay Raman Sinha, whatsApp, privacy policy, NCLAT, Competition Commission of India, Meta, Digital Personal Data Protection Act, 2023