The Supreme Court (SC) has strongly rebuked WhatsApp and its parent company, Meta Platforms, over concerns regarding their data-sharing practices, warning that the exploitation of Indian citizens' personal information, under the guise of consent, would not be tolerated.
During a hearing on Tuesday, February 3, 2026, a three-judge bench led by Chief Justice of India Surya Kant addressed appeals filed by Meta and WhatsApp against a Competition Commission of India (CCI) penalty of ₹213.14 crore. The court asserted that the companies were leveraging their dominant market position and undermining constitutional values, particularly the right to privacy. The court also criticized WhatsApp's privacy policy, deeming it "exploitative" and incomprehensible for many users, especially those from poorer or less educated backgrounds.
Chief Justice Surya Kant stated firmly that if Meta and WhatsApp were unwilling to address the data-sharing concerns, they were free to exit the Indian market. The court emphasized that it would not allow the companies to share even a single piece of user data. The bench made it clear that it would not permit the exploitation of personal data of users under the guise of consent or market choice. The court views the data-sharing framework as a potential "theft" of personal information.
The Supreme Court is examining challenges to an order by the National Company Law Appellate Tribunal (NCLAT) that upheld the CCI's finding against WhatsApp's 2021 privacy policy but partially relaxed restrictions on data sharing for advertising purposes. The CCI has also appealed the NCLAT ruling, arguing that allowing data sharing defeats the purpose of the original penalty. The Ministry of Electronics and Information Technology has been made a party to the petitions.
The court questioned the validity of user consent in a market where WhatsApp is virtually indispensable, suggesting that consent mechanisms were too complex for ordinary users to understand. The bench expressed concerns about "manufactured consent" and the effectiveness of opt-out mechanisms, particularly for vulnerable populations. The Supreme Court has asked WhatsApp and Meta to submit affidavits providing clear undertakings that they will not share user data until the matter is resolved. The matter is scheduled for further hearing on February 9, 2026. If such an undertaking is not given, the companies’ appeals against the NCLAT order could be dismissed.
The 2021 privacy policy update allowed WhatsApp to share user information with other Meta-owned companies, which could be used to operate, improve, customize, and support market services and offerings. Users were essentially given a "take it or leave it" choice: accept the updated policy or delete their accounts. While WhatsApp clarified that personal chats would remain end-to-end encrypted, data shared with businesses could be collected and used, including for advertising on Facebook. The CCI's initial penalty of ₹213.14 crore was imposed due to the policy's impact on competition and user choice.