Meta dodges data ban but still hit with Rs 213 crore
The National Company Law Appellate Tribunal has provided mixed results for Meta Platforms and WhatsApp in a competition dispute over the messaging service’s 2021 privacy policy changes. The appellate body maintained a penalty of 213.14 crore rupees levied by the Competition Commission of India but overturned key findings that WhatsApp controlled the market and eliminated a five-year prohibition against using customer information for advertisements.
The Competition Commission had determined in November 2024 that WhatsApp abused its market power by compelling users to accept updated terms requiring data transfers to other Meta properties without an opt-out choice. The regulator concluded this arrangement damaged competition in digital advertising. However, the tribunal panel headed by Justice Ashok Bhushan and Technical Member Arun Baroka removed these portions, stating the commission exceeded its legal authority under Section 4(2)(e) of the Competition Act. The appellate court accepted Meta’s position that blocking data transfers might harm WhatsApp’s no-cost service model.
A Meta representative said the company appreciated the tribunal’s ruling and stressed that personal messages remain protected with end-to-end encryption. The representative noted that WhatsApp’s voluntary business tools help users with payments, reservations and purchases while supporting small enterprises and advancing India’s electronic commerce sector.
