Meta VS CCI: NCLAT Reserves Order For Further Deliberation

SUMMARY

The NCLAT reserved its order on appeals by Meta Platforms and WhatsApp, challenging the CCI’s decision to slap a penalty of INR 213.1 Cr

The Appellate Tribunal directed the parties to file concise written submissions by October 6, after hearing arguments from both sides regarding data-sharing and competition concerns

The case pertains to WhatsApp’s 2021 privacy policy update, which the CCI said forced users to accept new terms on a “take it or leave it” basis, a move considered an abuse of its dominant position

The National Company Law Appellate Tribunal (NCLAT) has reserved its order on the appeals filed by social media company Meta and WhatsApp, challenging the Competition Commission of India’s (CCI) decision to slap a penalty of INR 213.1 Cr (about $24 Mn) for alleged anti-competitive practices relating to WhatsApp’s 2021 privacy policy update.

A bench of the NCLAT, led by chairperson Justice Ashok Bhushan and technical member Arun Baroka, completed hearing submissions on Thursday (September 25) and asked the involved parties to present written notes, not exceeding 10 pages, by October 6, 2025, PTI reported.

Earlier, the counsel representing Meta and WhatsApp argued that the CCI has no evidence against the global tech company that proves abuse of dominance or conduct that restricted market access for rivals.

The CCI, while slapping the penalty in November 2024, had directed Meta to halt certain data-sharing practices and barred WhatsApp from sharing user data with Meta or its products for advertising purposes for 5 years.

The CCI said that WhatsApp’s 2021 privacy policy forced users to accept new terms on a “take it or leave it” basis, a move considered an abuse of its dominant position that potentially damaged market competition. Additional remedies were stipulated, including behavioural changes such as limits on mandating data-sharing for users to access WhatsApp services in India.

Following that, Meta and WhatsApp challenged the CCI’s order last year. In January, the NCLAT granted the company an interim relief, temporarily staying the five-year data-sharing ban for advertising purposes.

The CCI has also tightened its noose on other big tech companies like Google in the past. Last month, the regulatory body ordered a probe into the big tech major’s alleged abuse of dominance in the online display advertising services market via its Google AdTech Stack.

The complaint was filed by industry body Alliance of Digital India Foundation (ADIF), which counts startups like Paytm, Matrimony.com, TrulyMadly, among others, as its members.

Besides, the likes of Amazon and Apple are also under investigation by the antitrust regulator.