Meta Vs CCI: Tech Giant Argues That CCI Failed To Prove Market Abuse

SUMMARY

Meta reportedly told the NCLAT that the CCI had failed to establish any evidence of abuse of dominance or conduct that restricted market access for rivals

The tech giant argued that the regulator had not demonstrated how limited data sharing from optional business features—such as Click-to-WhatsApp Ads—with Meta entities had adversely impacted competition in the online display advertising market

At the heart of the legal showdown between Meta and CCI is the INR 213.14 Cr penalty imposed on the social media giant in November 2024 over alleged unfair practices linked to WhatsApp

In the ongoing standoff between Meta and India’s antitrust regulator, the Competition Commission of India (CCI), the tech giant told the National Company Law Appellate Tribunal (NCLAT) on Monday that the watchdog had failed to establish any evidence of abuse of dominance or conduct that restricted market access for rivals.

As per a report by PTI, Meta’s counsel Amit Sibal argued that the CCI’s case rested on assumptions about potential future conduct rather than proven violations. He further noted that the regulator had not demonstrated how limited data sharing from optional business features—such as Click-to-WhatsApp Ads—with Meta entities had adversely impacted competition in the online display advertising market.

Sibal also contended that the CCI neither sought feedback from advertisers on the availability and substitutability of advertising services nor considered broader categories like online search advertising. As a result, he argued, the regulator had erroneously defined an “artificially narrow” relevant market limited only to online display advertising.

The CCI has sought additional time to respond to Meta’s submissions, with hearings now scheduled for September 19 and 22.

At the heart of the case is the INR 213.14 Cr penalty imposed on Meta by CCI in November 2024 for alleged unfair practices linked to WhatsApp. The probe dates back to 2021, when WhatsApp introduced a privacy policy requiring data sharing with Meta entities as a condition for continued use.

The CCI said this “take-it-or-leave-it” approach exploited WhatsApp’s dominance in messaging and risked strengthening Meta’s position in advertising through cross-platform data integration.

In its 2024 order, the CCI concluded that Meta had abused its dominant position, levied the penalty, and barred WhatsApp from sharing user data with Meta or affiliates for advertising purposes for five years.

In its plea filed with the NCLAT in January 2024, Meta countered that this restriction would hinder its ability to deliver personalised ads on Facebook and Instagram, affecting Indian businesses.

Meta and WhatsApp challenged the penalty before the NCLAT in January 2025. The tribunal granted interim relief by staying the five-year data-sharing ban while hearings continue.