Commitment to Privacy Safeguards
Meta Platforms Inc. and its subsidiary WhatsApp have conveyed to the Indian Supreme Court their intention to comply with the directives issued by the National
Company Law Appellate Tribunal (NCLAT). These directives, handed down in December of the previous year, pertain to extending data privacy and consent protections, specifically concerning data used for advertising purposes, to the purview of the Competition Commission of India (CCI). This assurance has been provided even as the tech companies continue their legal proceedings challenging these very mandates. A bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and Vipul M Pancholi heard the appeals lodged by the tech giants. The court's attention was also drawn to a cross-appeal filed by the CCI, which contests the NCLAT's decision allowing the ongoing use of user data for advertising activities.
Legal Proceedings Unfold
During the Supreme Court hearing, senior counsel Kapil Sibal, representing WhatsApp, informed the bench that the companies had resolved to implement the NCLAT's directions by March 16th. In response, the court chose to dismiss applications that sought an immediate halt to the NCLAT's order. However, the court made it clear that broader legal issues raised in the main appeals remain open for future adjudication. The Chief Justice noted that these dismissal applications were primarily aimed at obtaining a stay on the NCLAT's judgment, which had endorsed directions from the CCI that compelled Meta to adhere to specific mandates from a December 15, 2025, NCLAT order. The court further clarified that the dismissal of these interim pleas would not prejudice the arguments presented in the main appeal, and the companies were instructed to submit a compliance report. Additionally, the court directed that the CCI be permitted to examine an affidavit submitted by the appellants concerning their privacy policy and to present its response on record.
Past Criticisms and Penalties
The apex court's current proceedings are part of its review of appeals against a previous CCI order that levied a penalty of Rs 213.14 crore on Meta and WhatsApp concerning WhatsApp's privacy policy. Earlier, on February 3rd, the court had expressed strong disapproval of the companies' practices, stating that they could not "play with the right to privacy of citizens in the name of data sharing." The court had accused them of fostering a monopoly and engaging in the appropriation of customers' private information. Vehemently criticizing WhatsApp's privacy policy, the court referred to its users as "silent customers," characterizing them as an unorganized segment, dependent on digital services, and often unaware of the implications of data-sharing agreements. The court emphatically declared its stance: "We will not allow the rights of any citizen of this country to be damaged." This sentiment underscores the court's commitment to safeguarding individual privacy against corporate data practices.
NCLAT's Clarified Stance
Previously, on November 4, 2025, the NCLAT had rescinded a portion of the CCI's order. This section had prohibited WhatsApp from sharing user data with Meta for advertising purposes for a period of five years. Despite this modification, the NCLAT chose to uphold the Rs 213-crore penalty imposed on the social media platform. Subsequently, the tribunal provided further clarification regarding its ruling. It was clarified that the tribunal's stipulations concerning privacy and consent safeguards would indeed apply to the collection and sharing of user data, not only for advertising but also for non-advertising purposes, and across all services beyond just WhatsApp. This clarification aimed to ensure comprehensive data protection for users across Meta's ecosystem.
