CCI moves NCLAT to seek clarification in WhatsApp case
Competition watchdog CCI has approached the NCLAT for clarification on its recent verdict in the WhatsApp case, asking whether the order implies that user consent is required in cases where data is used for advertising or non-advertising purposes.
Earlier this month, the appeal court granted partial relief to WhatsApp after setting aside part of the Fairtrading regulator’s decision banning the instant messaging app from sharing data with Meta Platforms for advertising purposes for five years.
NCLAT, however, retained the penalty of Rs 213 crore imposed on the social media platform and upheld WhatsApp’s policy violation of Section 4(2)(a)(i) and 4(2)(c) of 2021 as it amounted to abuse of dominance by the instant messaging app and created a situation of market denial.
The matter came before the two-member bench of NCLAT on Tuesday and passed the order on November 4, 2025, giving notice to Meta and WhatsApp, whose lawyers were present in the court.
The National Company Law Appellate Tribunal (NCLAT) has directed that the Competition Commission of India (CCI) list the matter on November 25 for the next hearing on the disclosure request.
When contacted, CCI consultant Samar Bansal told PTI that they are seeking clarification on whether user consent is required if their data is used for advertising or non-advertising purposes.
“Now, in our understanding, what NCLAT has simply said is that user consent is very important and irrespective of whether the data is used for advertising purposes or for any other non-advertising purpose, please obtain user consent. This is what NCLAT has kept in different sections of the order,” he said.
However, in paragraph 264, which is the concluding part of the judgment, the learned court observed that paragraph 247.1 of the original CCI judgment. He said that paragraph was rescinded and 247.2 was approved. The effect of this is that user consent is now required for WhatsApp to share user data for non-advertising purposes, but there is no mention of anything for advertising purposes one way or another.
“So we simply moved an application for the court to clarify what this means, and in fact, what is already said in its judgment is that user consent must be obtained regardless of whether WhatsApp shares user data with other Facebook companies for advertising or non-advertising purposes. This is one of the simple clarifications we are asking for,” he said.
NCLAT, in its 184-page order, said cross-platform data sharing between WhatsApp and Meta increases Meta’s advantage in the display advertising market and creates a barrier to entry for rival firms in digital advertising that do not have equivalent access to WhatsApp data.
However, it also said that CCI “breach of order keeping of Section 4(2)(e) is not sustainable”; Because WhatsApp and Meta are different legal entities, it cannot be concluded that Meta uses its dominance in one market (OTT messaging) to maintain or expand its dominance in another market (online display advertising).
In November last year, CCI imposed a fine of ₹213.14 billion on social media giant Meta in connection with the WhatsApp privacy policy update made in 2021.
Meta Platforms and WhatsApp had challenged this order before the NCLAT; This came in January this year when the CCI issued an interim order repealing its five-year ban on advertising data-sharing practices between WhatsApp and Meta, giving the tech giant a respite.
It was published – 20 November 2025 09:40 IST
