NCLAT Upholds User Choice, Orders WhatsApp to Follow CCI Data Sharing Rules
The National Company Law Appellate Tribunal (NCLAT) in WhatsApp Vs Competition Commission of India has clarified that WhatsApp must follow the Competition Commission of India’s (CCI) directions that give users greater control over how their data is shared with Meta companies.
The clarification came after the CCI approached NCLAT seeking clarity on its earlier judgment, which had set aside the five-year ban on WhatsApp from sharing user data with Meta for advertising purposes. While removing the ban, NCLAT explained that it never intended to dilute user rights or remove safeguards meant to protect them.
NCLAT stated that WhatsApp cannot force users to share their data with Meta companies as a condition for using the app in India. Users must have a clear option to opt in or opt out of data sharing, along with the ability to review and change their choice later. The tribunal also stressed that WhatsApp must clearly explain what data is being shared, for what purpose, and for how long.
The tribunal rejected arguments by WhatsApp and Meta that the CCI’s application amounted to a review of the judgment. It clarified that restoring user choice and preventing exploitation were always central to its findings.
NCLAT noted that removing these safeguards would allow WhatsApp to collect and use data for advertising without proper consent, which goes against competition law principles. It therefore restored the CCI’s remedial directions for all non-essential data collection and sharing, including advertising-related use.
WhatsApp has been given three months to make the required changes and comply with the directions.
Earlier, in 2024, the CCI had imposed a penalty of ₹213.14 crore on Meta, holding that WhatsApp’s 2021 privacy policy unfairly forced users to accept data sharing. While NCLAT had stayed the penalty and data-sharing ban in January 2025, it has now reaffirmed that user consent and transparency cannot be compromised.
