Relief for WhatsApp as Indian tribunal suspends CCI's 5-yr data-sharing ban

New Delhi, Jan 23, 2025

The National Company Law Appellate Tribunal has temporarily suspended the antitrust panel CCI's five-year ban on WhatsApp sharing data with Meta entities, pending a challenge by Meta

An Indian appeals tribunal on Thursday temporarily suspended the Competition Commission of India's (CCI) five-year data-sharing ban between WhatsApp and its parent company Meta Platforms, affecting its other applications like Facebook and Instagram, particularly for advertising purposes, news agency Reuters reported.

Meta is challenging the CCI's November 2024 directive, which prohibits WhatsApp from sharing user data with its other entities for targeted advertising, arguing that the ban would adversely affect its operations in India.

The National Company Law Appellate Tribunal (NCLAT) halted the ban's enforcement while Meta and WhatsApp contested the antitrust decision.

The tribunal pointed out that the ban could severely disrupt WhatsApp’s business model in India. In its appeal, Meta argued that the ban could force WhatsApp to "rollback or pause" certain features in India and hinder its ability to serve personalised ads on Facebook and Instagram.

A Meta spokesperson welcomed the interim ruling, stating they would assess further steps. According to Thursday’s ruling, WhatsApp must also provide users with an option to opt-out of a 2021 privacy policy update, in accordance with the previous antitrust order.

[The Business Standard]