Meta, WhatsApp approach Supreme Court against NCLAT decision on ₹213 crore CCI penalty

Meta Platforms Inc and WhatsApp have moved the Supreme Court to set aside a National Company Law Appellate Tribunal (NCLAT) ruling that upheld a ₹213.14 crore penalty imposed by the Competition Commission of India (CCI) over WhatsApp’s 2021 privacy policy changes.

The appellate tribunal last year set aside the CCI’s direction that barred Meta and WhatsApp from sharing user data with other Meta group companies for advertising purposes for five years. However, it retained the penalty and other directions issued by the competition regulator.

In November 2024, the CCI found that the messaging violated the Competition Act, 2002 by introducing a 'take-it-or-leave-it' privacy policy that required users to agree to wider data sharing with Meta group companies to keep using the service.

A two-member bench of the NCLAT, comprising chairperson Justice Ashok Bhushan and technical member Arun Baroka, later struck down the CCI’s finding that the tech giant had used its dominant position in messaging to strengthen its position in online advertising. In January 2025, the tribunal granted interim relief to the companies by staying the five-year data-sharing ban, observing that such a restriction could disrupt the messaging app’s free-to-use business model.

The case traces back to January 2021, when the messaging app introduced an updated privacy policy that made data sharing with Meta group firms mandatory. The CCI took suo motu cognisance of the policy, stating that it effectively removed users’ choice to opt out of data sharing.

The regulator said it reduced user autonomy and violated provisions of the Competition Act, 2002. In its November 2024 order, the CCI imposed a fine of Rs 213.14 crore on Meta and WhatsApp, prohibited data sharing with Meta entities for five years, and directed the companies to clearly state the purpose for collecting each category of user data.

Meta Platforms and WhatsApp subsequently challenged the CCI order, leading to the NCLAT ruling now under review by the Supreme Court.