NCLAT Partly Overturns CCI Order in WhatsApp Privacy Case; Upholds ₹213 Crore Fine

The National Company Law Appellate Tribunal (NCLAT) on Tuesday gave partial relief to Meta Platforms Inc. and WhatsApp LLC in their appeal against the Competition Commission of India (CCI) order concerning WhatsApp’s 2021 privacy policy.

While the tribunal upheld the ₹213.14 crore penalty imposed by the CCI, it overturned a key finding — that Meta had misused WhatsApp’s dominant position in the messaging market to strengthen its hold over online advertising.

A Bench comprising Justice Ashok Bhushan (Chairperson) and Technical Member Arun Baroka also quashed the CCI’s direction restricting WhatsApp and Meta from sharing user data for advertisements for five years.

“The findings of the Commission relating to Section 4(2)(e) and the direction in paragraph 247.1 are set aside. The rest of the order is upheld,” the Bench stated.

Earlier, paragraph 247.1 of the CCI’s order had barred WhatsApp from sharing user data with Meta group companies for advertising purposes for five years. In January 2025, the NCLAT had already stayed this five-year restriction temporarily, citing that such a ban could affect WhatsApp’s free-to-use model.

This case dates back to January 2021, when WhatsApp introduced a new privacy policy that made it mandatory for users to share their data with Meta companies. The CCI had taken suo motu action, stating that the policy removed users’ right to opt out and constituted an abuse of dominance.

In its order of November 18, 2024, the CCI held that WhatsApp’s policy update was unfair and anti-competitive, accusing Meta of using WhatsApp’s dominance in messaging to strengthen its position in digital advertising.

Meta, however, argued that the CCI had gone beyond its authority by dealing with privacy and data protection issues. The CCI maintained that its directions were focused on preventing anti-competitive practices and ensuring user choice.

While NCLAT has now lifted the five-year data-sharing restriction, other directions from the CCI remain valid. WhatsApp must clearly inform users about what data is shared, the purpose of such sharing, and offer an option to opt out or modify their consent at any time.

Case Title: WhatsApp LLC v CCI with Meta Platforms Inc v CCI
Case Number: Competition App (AT) No. 1 of 2025