NCLAT Reserves Judgment on Meta and WhatsApp's Appeal Against CCI's Rs 213.14 Crore Penalty
The National Company Law Appellate Tribunal (NCLAT) has finished hearing Meta Platforms and WhatsApp's appeals against the Competition Commission of India's (CCI) Rs 213.14 crore penalty for alleged unfair business practices related to WhatsApp's 2021 privacy policy. The NCLAT has reserved its judgment and directed all parties to submit written notes. Meta's counsel argued against the CCI's statements and five-year data-sharing ban, while the CCI defended its position, stating WhatsApp abused its dominant position. The case's outcome could significantly impact Meta's operations in India, particularly regarding data sharing between its platforms.

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The National Company Law Appellate Tribunal (NCLAT) has concluded hearings on Meta Platforms and WhatsApp's appeals challenging the Competition Commission of India's (CCI) Rs 213.14 crore penalty for alleged unfair business practices. The case revolves around WhatsApp's 2021 privacy policy update, which sparked controversy and regulatory scrutiny.
Key Developments
- The NCLAT bench has reserved its judgment after hearing arguments from both sides.
- All parties have been directed to submit written notes.
- The CCI's original order included a five-year ban on sharing WhatsApp user data with other Meta companies for advertising purposes.
Meta's Arguments
Meta's counsel presented several points during the hearings:
- Accused the CCI of making inaccurate statements in its order.
- Argued that the regulator's five-year data-sharing ban lacked proper reasoning.
- Contended that the CCI failed to address their arguments adequately.
- Claimed the CCI incorrectly interpreted Supreme Court judgments regarding market dominance in online display advertisements.
CCI's Defense
The CCI's counsel stood firm on their position:
- Defended the penalty, stating that WhatsApp abused its dominant position.
- Argued that WhatsApp imposed the privacy policy on a 'take it or leave it' basis.
- Asserted that the matter falls under competition law jurisdiction.
Background of the Case
- The CCI's original order directed Meta to cease anti-competitive practices and implement behavioral remedies.
- A key component of the order was a five-year ban on sharing WhatsApp user data with other Meta companies for advertising purposes.
- NCLAT had issued an interim order staying the five-year ban.
The case highlights the ongoing global scrutiny of tech giants' data practices and their impact on fair competition. The NCLAT's final judgment, once issued, could have significant implications for Meta's operations in India, particularly concerning data sharing between its various platforms.
As the tech industry and regulators closely watch this case, it underscores the complex interplay between privacy policies, data sharing, and competition law in the digital age. The outcome may set a precedent for how similar cases are handled in India and potentially influence regulatory approaches in other jurisdictions.