The SC was hearing an appeal filed by WhatsApp and Meta against a NCLAT order that upheld the INR 213.14 Cr penalty imposed by the CCI over WhatsApp's updated privacy policy
The Supreme Court rebuked online messaging platform WhatsApp and its parent Meta for allegedly exploiting the data of Indians, asking the company to exit the country if it can’t follow its constitutional values.
The SC directed WhatsApp to completely stop sharing user information and asked the platform to provide a signed affidavit and undertaking from its management agreeing to the same, LiveLaw reported.
“You were bought by Facebook, tomorrow Facebook will be bought by someone else and you will transfer the data. You cannot play with the right of privacy of this country, let a clear message go on your WhatsApp. You are making a mockery of the constitutionalism of this country,” Chief Justice of India Surya Kant was quoted as saying.
The SC was hearing an appeal filed by WhatsApp and Meta against a National Company Law Appellate Tribunal (NCLAT) order that upheld the INR 213.14 Cr penalty imposed by the Competition Commission of India (CCI) over WhatsApp’s updated privacy policy launched in 2021.
While WhatsApp and Meta filed appeals against the order, the CCI filed a cross appeal against the NCLAT’s judgement as it allowed the platform to share users’ data for advertising purposes.
A bench comprising CJI Kant and Justices Joymalya Bagchi and Vipul Pancholi heard the case today.
While WhatsApp’s counsel argued that customers have an option to opt out if they don’t want their data to be shared, the CJI said that WhatsApp has a near complete monopoly over online messaging platforms, leaving no alternative choice for consumers.
He further added that common consumers, like fruit sellers, domestic helpers, or those living in rural villages, who are “addicted to the system” won’t be able to understand the complicated terms of WhatsApp’s privacy policy.
“You might have taken the data of millions of persons. This is a decent way of committing theft of private information. We will not allow you to use it,” the CJI added.
Senior advocate Mukul Rohatgi said that a Constitution Bench is examining WhatsApp’s privacy policy and the platform had already submitted an undertaking stating that no user will be barred from the platform if they don’t agree to the policy.
What’s WhatsApp Privacy Policy Case?
The CCI, in November 2024, slapped a penalty of INR 213.14 Cr on WhatsApp parent Meta for abusing its dominant position. The case pertained to WhatsApp’s contentious privacy policy, published in 2021, which said users who would not accept the amended policy would not be able to access WhatsApp chats or groups.
The CCI said that the privacy policy’s “take-it-or-leave-it” approach constituted an imposition of unfair conditions under the Competition Act.
While imposing the penalty, the regulator also made remedial suggestions, which included prohibiting WhatsApp from tying service access to data sharing, mandating clear opt-in and opt-out mechanisms, and requiring detailed disclosures on the nature and purpose of data sharing across Meta’s platforms.
TBDWhatsApp challenged the judgement in the NCLAT in January last year. In November, the Appellate Tribunal set aside the five-year restriction on advertising-related data sharing and overturned the CCI’s finding that WhatsApp had unlawfully leveraged its dominance into Meta’s advertising ecosystem, while upholding the monetary penalty imposed on the company.
Curated by James Chen
