[Update] NCLAT Admits Meta, WhatsApp Pleas Against CCI’s Penalty

Update | January 16, 1:30 PM

The National Company Law Appellate Tribunal (NCLAT) today (January 16) admitted petitions filed by Meta and Whatsapp against an order passed by the Competition Commission of India (CCI), which imposed a penalty of INR 213.14 Cr for violating competition laws. 

“We find that the submission raised by the parties needs consideration. We admit both the appeals,” NCLAT bench said after hearing initial submissions, according to a PTI report. 

Original | January 15, 10:05 PM

Social media giant Meta may reportedly have to “roll back or pause” some features in India to comply with the Competition Commission of India’s (CCI) directions in connection with the 2021 WhatsApp privacy policy case. 

Last year, the competition watchdog imposed a penalty of INR 213.14 Cr on Meta for violating competition laws. The CCI also banned its messaging platform WhatsApp from sharing user data with Meta for advertising purposes. 

As per a court filing seen by Reuters, Meta said that the data sharing ban will hinder its ability to offer personalised advertisements on Facebook or Instagram. The social media giant also claimed that Indian fashion businesses will not be able to personalise Facebook or Instagram ads “based on their interaction with a WhatsApp user regarding a specific clothing line”.

“Under its widest interpretation, implementing the remedy will likely require Meta to roll back or pause several features and products,” the court filing read. 

It is pertinent to note that WhatsApp publicly claims that it shares data, including a user’s phone number, transaction data, interaction with businesses online and mobile device information, with Meta. 

Meanwhile, the social media juggernaut also reportedly believes that the CCI’s directions impact its and WhatsApp’s ability to remain commercially viable.

This comes months after the watchdog imposed a penalty of INR 213.14 Cr on Meta for abusing its dominant position in connection with the 2021 WhatsApp privacy policy case. The CCI also issued “cease-and-desist directions” and directed both Meta and WhatsApp to implement certain “behavioural remedies” within a “defined timeline”.

The antitrust watchdog said that data sharing between Meta and Whatsapp would result in entry barriers for the competitors of the social media giant. 

However, Meta challenged the ruling and filed an appeal before the National Company Law Appellate Tribunal (NCLAT), which is set to hear the case on January 16.

For the uninitiated, WhatsApp introduced a new privacy policy in 2021 but the aftermath saw a huge controversy as two individuals challenged the new mandates in the Delhi High Court, contending that it was a violation of their privacy and free speech.