NCLAT Stays CCI’s 5-Year Ban on WhatsApp, Orders Meta to Pay Part of Fine

GG News Bureau
New Delhi, 23rd Jan. In a major relief to Meta, the National Company Law Appellate Tribunal (NCLAT) on Thursday stayed the five-year ban imposed by the Competition Commission of India (CCI) on WhatsApp for its data-sharing practices. The NCLAT, led by Justice Ashok Bhushan, stated that such a ban could disrupt WhatsApp’s business operations in India, where the platform has over 500 million monthly active users.

The appellate tribunal also directed Meta to deposit 50 percent of the Rs 213 crore penalty imposed by the CCI within two weeks. Meta has already paid 25 percent of the fine.

The NCLAT’s decision follows a plea from Meta and WhatsApp seeking a stay on the CCI’s order, which was issued last week. The CCI had imposed the fine on WhatsApp in November 2023 for allegedly abusing its dominant position and for violating competition norms by sharing user data with other Meta products, including Facebook and Instagram, without providing users with an opt-out option.

The tribunal noted that the upcoming data protection law in India could potentially address concerns related to data privacy. WhatsApp’s 2021 privacy policy allowed mandatory data sharing with other Meta companies, which led to the investigation by the CCI in 2021.

The regulatory body had directed WhatsApp to cease sharing user data with other Meta companies for advertising purposes for a period of five years. Meta had expressed disagreement with the CCI’s decision and had appealed to the NCLAT, stating that the order could have significant ramifications for the industry.

The NCLAT’s stay on the ban is seen as a temporary relief for the social media giant while the matter is further reviewed.

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