The National Company Law Appellate Tribunal (NCLAT) on Tuesday granted partial relief to Meta Platforms Inc. and WhatsApp LLC in their appeal against the Competition Commission of India’s (CCI) 2024 order concerning WhatsApp’s 2021 privacy policy update.

While upholding the Rs. 213.14 crore penalty imposed by the CCI, the Tribunal overturned the finding that Meta had abused WhatsApp’s dominant position in the instant messaging market to consolidate its foothold in the online display advertising space.

A Bench comprising Chairperson Justice Ashok Bhushan and Technical Member Arun Baroka also set aside the CCI’s direction prohibiting Meta and WhatsApp from sharing user data with other Meta group entities for advertising purposes for five years.

“The findings of the Commission in respect of Section 4(2)(e) and the direction in paragraph 247.1 are hereby set aside. The remaining parts of the order are upheld,” the Bench stated.

Paragraph 247.1 of the CCI order had earlier mandated that WhatsApp refrain from sharing any user data collected on its platform with other Meta companies or products for advertising for a five-year period from the receipt of the order. Post that period, certain modified conditions were to apply.

In January 2025, the NCLAT had granted interim relief by staying this five-year data-sharing ban, citing concerns that such a restriction could significantly disrupt WhatsApp’s existing business model, which relies on free services supported by data-driven advertising.

The controversy dates back to January 2021, when WhatsApp introduced a revised privacy policy that made it compulsory for users to consent to sharing their data with other Meta-owned platforms. The CCI took suo motu cognizance of the update, observing that the new terms eliminated the users’ option to decline data sharing.

In its order dated November 18, 2024, the CCI had found WhatsApp’s updated policy to be an unfair and exploitative condition, holding that Meta leveraged WhatsApp’s dominance in the messaging ecosystem to strengthen its position in the online advertising market, in violation of the Competition Act.

During the appeal proceedings, Meta contended that the CCI had exceeded its statutory mandate by delving into privacy and data protection issues—areas governed by separate legal frameworks. The CCI, on the other hand, maintained that its intervention was necessary to curb anti-competitive conduct resulting from WhatsApp’s market dominance.

With the NCLAT’s latest ruling, the monetary penalty and certain compliance requirements—such as ensuring transparency in data sharing, providing users with detailed information on what data is shared and why, and enabling an opt-out option—remain enforceable. However, the restriction on data sharing for advertisements has been lifted.

Case Title: WhatsApp LLC v. Competition Commission of India; Meta Platforms Inc. v. Competition Commission of India
Case Number: Competition App (AT) No. 1 of 2025