The National Company Law Appellate Tribunal overturned a five‑year ban that had barred WhatsApp from sharing user data with other Meta entities for advertising, but it upheld a $25.4 million fine for abusing dominance. The dispute stems from WhatsApp's 2021 privacy policy changes, which the Competition Commission of India said pressured users to accept new terms. Meta argued the regulator lacked the technical expertise to assess the order and said users' personal messages remain end‑to‑end encrypted. The decision is a partial win for Meta in India, its largest market by users.
Indian Tribunal Overturns WhatsApp Data‑Sharing Ban but Upholds $25.4M Fine — Partial Win for Meta
The National Company Law Appellate Tribunal overturned a five‑year ban that had barred WhatsApp from sharing user data with other Meta entities for advertising, but it upheld a $25.4 million fine for abusing dominance. The dispute stems from WhatsApp's 2021 privacy policy changes, which the Competition Commission of India said pressured users to accept new terms. Meta argued the regulator lacked the technical expertise to assess the order and said users' personal messages remain end‑to‑end encrypted. The decision is a partial win for Meta in India, its largest market by users.
17:04, 04.11.2025Technology
Tribunal lifts data‑sharing ban but confirms penalty
An Indian appeals tribunal on Tuesday set aside a five‑year ban that barred Meta-owned WhatsApp from sharing user data with other Meta companies for advertising, but it upheld a $25.4 million fine imposed by the Competition Commission of India (CCI).
The National Company Law Appellate Tribunal (NCLAT) said the CCI's prohibition lacked sufficient rationale, noting that "the rationale for the...ban was missing altogether." At the same time, the tribunal agreed with the regulator that Meta had abused its dominant position by imposing unfair conditions on users, and therefore sustained the monetary penalty.
WhatsApp had challenged the CCI's November 2024 order, warning the ban could force the platform to roll back some features. Meta also told the tribunal the regulator did not have the "technical expertise" to fully grasp the implications of its order.
The dispute dates back to 2021 after changes to WhatsApp's privacy policy. The CCI's investigation concluded that the update effectively coerced users into accepting new terms or facing loss of access to the service.
"While we evaluate the written order, we continue to reiterate that WhatsApp's 2021 privacy policy update did not change the privacy of people's personal messages which remain end‑to‑end encrypted," a Meta spokesperson said in an emailed statement to Reuters.
The decision is a partial legal victory for Meta in India, its largest market by user numbers across Facebook, Instagram and WhatsApp. The lifted ban removes an advertising-related restriction, but the upheld fine reinforces regulatory scrutiny of how large tech platforms apply terms and collect data.
What happens next: Meta and regulators may now consider appeals or further legal steps depending on the written judgment and any directives contained within it. The ruling underscores continuing global tensions over user privacy, data sharing and competition law.