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What is the story about?
Mark Zuckerberg-backed Meta and WhatsApp have moved the Supreme Court to challenge the Competition Commission of India’s (CCI) 2024 order, which charged the companies with “abuse of dominant position” over WhatsApp’s 2021 Privacy Policy.
The plea also contests the NCLAT’s decision, which had largely upheld the CCI order, including the ₹213.14 crore penalty. The Supreme Court is yet to schedule a hearing.
WhatsApp’s 2021 privacy policy required users to either accept data-sharing with Meta and its group companies or discontinue the messaging service. Earlier policies in 2016 and 2019 allowed users to opt out while continuing to use WhatsApp.
CCI had taken suo moto cognisance of the “take it or leave it” privacy policy, ruling that Meta and WhatsApp imposed unfair conditions, abused dominance, and denied market access. It had also directed WhatsApp not to share user data with Meta for advertising purposes for five years.
The NCLAT upheld the claims of abuse and the penalty, while clarifying that user data must be shared only with consent and users must have the option to opt out. The appellate tribunal did grant partial relief by setting aside the five-year restriction on data sharing imposed by CCI.
The plea also contests the NCLAT’s decision, which had largely upheld the CCI order, including the ₹213.14 crore penalty. The Supreme Court is yet to schedule a hearing.
WhatsApp’s 2021 privacy policy required users to either accept data-sharing with Meta and its group companies or discontinue the messaging service. Earlier policies in 2016 and 2019 allowed users to opt out while continuing to use WhatsApp.
CCI had taken suo moto cognisance of the “take it or leave it” privacy policy, ruling that Meta and WhatsApp imposed unfair conditions, abused dominance, and denied market access. It had also directed WhatsApp not to share user data with Meta for advertising purposes for five years.
The NCLAT upheld the claims of abuse and the penalty, while clarifying that user data must be shared only with consent and users must have the option to opt out. The appellate tribunal did grant partial relief by setting aside the five-year restriction on data sharing imposed by CCI.
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