Supreme Court adjourns hearing in Meta, WhatsApp pleas challenging CCI fine to 23 February
The Supreme Court on Monday postponed the hearing on the plea filed by WhatsApp and its parent company Meta Platforms challenging the case. ₹213.14 crore penalty was imposed by the Competition Commission of India (CCI) over the messaging platform’s 2021 privacy policy. The matter is now listed for discussion on February 23.
A bench led by Chief Justice of India Surya Kant, who was earlier expected to give directions in the case, postponed the hearing due to unavailability of senior advocate Kapil Sibal, who was present for Meta and WhatsApp.
The case concerns WhatsApp’s controversial 2021 privacy policy update that allowed user data, including phone numbers, device information and interactions with business accounts, to be shared with Meta companies on a “take it or leave it” basis. The policy triggered widespread concerns about privacy and competition.
Based on these concerns, the CCI took notice in March 2021 and ordered an investigation into whether WhatsApp was abusing its dominant position in the messaging market. The investigation eventually led to penalties being imposed on Meta and WhatsApp.
In the previous hearing on February 3, the Supreme Court issued a stern warning to Meta and WhatsApp stating that they cannot be allowed to share user data for advertising purposes under the 2021 policy. The bench, also comprising Justice Joymalya Bagchi and Justice Vipul Pancholi, told Meta that continuing to share WhatsApp user data for advertising purposes will not be tolerated.
The court asked Meta and WhatsApp to make a statement with a clear commitment that user data will not be shared for advertising purposes, and warned that failure to do so could result in the rejection of their defenses. However, no final decision was made after the companies asked for time to respond to the court’s questions.
In November 2024, CCI fined Meta and WhatsApp ₹213.14 crore, stating that WhatsApp abused its dominant position by forcing users to accept extended data sharing with Meta as a condition of continuing to use the app. The regulator found that consent obtained under the policy was coercive and harmful to competition.
Meta and WhatsApp challenged the decision in the National Company Law Appellate Tribunal (NCLAT). In its verdict on November 4, the NCLAT largely upheld the CCI’s findings and the penalty but lifted the five-year ban on WhatsApp from sharing user data with Meta companies for advertising purposes. The court later clarified that user consent is mandatory for both advertising and non-advertising data sharing.
Both Meta and CCI appealed to the Supreme Court; The regulator appealed the lifting of the five-year ban, while Meta also appealed the findings and penalty.
If the apex court ultimately accepts CCI’s findings and bans data use for advertising purposes, it could have significant implications for Meta’s India business, whose platforms together serve around 850 million users.
