NCLAT Overrules CCI: WhatsApp's Data Sharing Continues with Limits

The National Company Law Appellate Tribunal (NCLAT) has decided to lift part of a restriction imposed by the Competition Commission of India (CCI) that had stopped WhatsApp from sharing data with its parent company, Meta Platforms, for advertising purposes.

Despite setting aside section 247.1 of the order, the NCLAT left unchanged the Rs 213 crore penalty on Meta. The decision comes after Meta and WhatsApp contested the CCI's November 2024 ruling, which had raised competition concerns over WhatsApp's updated privacy policy.

The CCI had previously mandated a cessation of certain anti-competitive practices by Meta, which included directives that restricted data sharing between WhatsApp and other Meta entities. The tribunal’s decision provides some relief to Meta, despite maintaining the financial penalty.