WhatsApp Privacy Policy Under Fire! Meta Takes CCI to NCLAT Over ₹213 Crore Penalty

New Delhi: Meta has moved the National Company Law Appellate Tribunal (NCLAT), contesting the Competition Commission of India (CCI) order that imposed a ₹213 crore penalty over WhatsApp’s 2021 privacy policy update.

Meta Appeals Against CCI’s Ruling

The CCI order, issued in November 2023, directed WhatsApp not to share user data with Meta’s other products or companies for advertising purposes for the next five years. It also ruled that WhatsApp’s “take-it-or-leave-it” policy unfairly forced users to accept broader data collection and sharing within the Meta Group.

Challenging this decision, Meta has requested urgent hearing at NCLAT, arguing that the CCI’s ruling has significant implications for the tech industry. The appeal is set for a hearing on January 16.

WhatsApp’s Response to CCI’s Directive

WhatsApp, which has over 500 million active users in India, has denied allegations of privacy violations. A Meta spokesperson clarified that the 2021 policy update did not alter user privacy regarding personal messages and was offered as an optional business feature. The spokesperson further stated:

“We ensured that no user would have their account deleted or lose functionality due to this update. The update aimed to provide more transparency on data collection and usage.”

Background of CCI’s Probe on WhatsApp

The CCI launched an investigation in March 2021 into WhatsApp’s updated privacy policy, which enabled mandatory data sharing with Facebook (now Meta) and expanded its data collection scope. The commission found this approach to be unfair and anti-competitive.

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With the case now before NCLAT, all eyes are on the January 16 hearing, which could have far-reaching effects on data privacy regulations in India and the tech industry’s competitive landscape.