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NCLAT granted interim relief to Meta by putting on hold CCI's five-year ban on WhatsApp-Meta data sharing
The tribunal noted the ban could lead to WhatsApp's business model collapse, while Meta argued it would need to roll back features in India
The development comes as Meta faces multiple regulatory challenges in India, including a recent controversy over Zuckerberg's election comments
The National Company Law Appellate Tribunal (NCLAT) has reportedly granted interim relief to Meta platforms by staying the five-year ban imposed by the Competition Commission of India (CCI) on WhatsApp’s data sharing policy.
As per Reuters, the ban “may lead to a collapse” of WhatsApp’s business model, the appeals tribunal noted.
In its challenge to the ban, Meta told the appeals tribunal that WhatsApp would need to ‘roll back or pause’ some features in India and curb its ability to offer users personalised ads on Facebook and Instagram, the report said.
Under the order on Thursday, WhatsApp will have to provide an opt-out option to users from a 2021 privacy policy update in line with the November antitrust order.
In November, the CCI imposed a INR 213.14 Cr penalty on Meta for abuse of dominant position. The watchdog said the data sharing between WhatsApp and Meta would create entry barriers for competitors.
The case originated from a 2021 Delhi High Court petition where two individuals challenged WhatsApp’s policy update, citing privacy concerns.
This development comes amid Meta’s ongoing challenges in India. On January 15, the company apologised for CEO Mark Zuckerberg’s comments about Indian elections made during a Joe Rogan podcast.
The apology followed BJP MP Nishikant Dubey’s announcement that the parliamentary panel on IT would summon Meta officials over the remarks. Dubey, who heads the panel, said the company would need to apologise to the Indian Parliament and people for spreading misinformation.
Meta also faces other regulatory challenges in India, including issues with service reliability and addressing fake news on its platforms. Last month, the Delhi High Court directed the company to remove deepfake content featuring journalist Rajat Sharma from its platform.
