Thu Jan 23 16:35:35 UTC 2025: ## NCLAT Stays CCI Ban on WhatsApp Data Sharing, Reduces Meta Penalty
**New Delhi, [Date]** – The National Company Law Appellate Tribunal (NCLAT) has temporarily halted the Competition Commission of India’s (CCI) five-year ban on WhatsApp’s data sharing practices with its parent company, Meta, for advertising purposes. The NCLAT also stayed a ₹213.14 crore penalty levied against Meta, contingent on the company depositing 50% of the remaining amount (after accounting for a previous 25% deposit) within two weeks.
The CCI had issued the ban and penalty in November 2024, citing WhatsApp’s 2021 privacy policy update as unfairly compelling users to agree to extensive data collection and sharing within the Meta group. The CCI’s 156-page order deemed this an abuse of dominant market position and included a five-year prohibition on data sharing for advertising purposes between WhatsApp and other Meta entities. The CCI also mandated several behavioral remedies to address anti-competitive concerns.
The NCLAT, however, expressed concern that the five-year ban could jeopardize WhatsApp’s business model, given the platform’s free service provision. The tribunal noted the pending Supreme Court review of the 2021 privacy policy and the recently enacted Digital Personal Data Protection Act, suggesting these might address data protection concerns. The NCLAT has scheduled a further hearing on March 17.
Meta welcomed the partial stay, stating it will evaluate next steps while maintaining its focus on supporting businesses reliant on its platform.
The decision has sparked debate about the effectiveness of current competition laws. Murugavel Janakiraman, CEO of Matrimony.com, argued the ruling highlights the limitations of ex-post (reactive) regulation and advocates for ex-ante (proactive) rules, as proposed in the draft Digital Competition Bill, to prevent future abuses by dominant digital platforms.
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