The Supreme Court has deferred the hearing of pleas from Meta Platforms Inc. and WhatsApp against a ₹213.14 crore penalty imposed by the Competition Commission of India (CCI) to February 23. The decision to postpone the hearing was made by a bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and N V Anjaria. The adjournment was requested due to the unavailability of senior advocate Kapil Sibal, who is reportedly unwell.
The case revolves around the CCI's order which imposed the penalty on Meta and WhatsApp over concerns regarding WhatsApp's privacy policy. The CCI had concluded that WhatsApp's "take-it-or-leave-it" approach to its 2021 privacy policy update amounted to an abuse of its dominant position in the over-the-top (OTT) messaging services market. The regulator argued that the policy effectively forced users to consent to sharing their data with other Meta-owned companies to continue using WhatsApp.
Meta and WhatsApp initially contested the CCI's penalty before the National Company Law Appellate Tribunal (NCLAT). While the NCLAT, in November 2024, overturned the CCI's directive that had barred Meta and WhatsApp from sharing user data with other Meta group entities for advertising purposes for five years, it upheld the monetary penalty of ₹213.14 crore. The NCLAT did, however, strike down the CCI's finding that Meta had abused its dominant position in the messaging market to strengthen its hold on online advertising.
The dispute originated in January 2021 when WhatsApp announced its updated privacy policy, which mandated data sharing with Meta group firms. The CCI initiated a suo motu investigation, asserting that the update eliminated users' ability to opt out of data sharing. The regulator contended that this "take it or leave it" approach infringed upon user autonomy and violated the Competition Act, 2002.
During an earlier Supreme Court hearing, the Chief Justice emphasized that commercial interests cannot supersede citizens' fundamental rights. The court questioned whether users provide truly informed consent, pointing out that lengthy and complex privacy policies are often difficult for average users to fully comprehend. The court also highlighted the significant economic value of user data, which is monetized through targeted advertising, necessitating strict oversight of Big Tech companies.
In January 2025, the appellate tribunal had temporarily suspended the fine and the CCI's five-year restriction on data sharing, citing potential disruptions to WhatsApp's free-to-use business model. However, the tribunal's final ruling in November 2025 upheld the penalty while partially siding with WhatsApp by reversing the CCI's determination that Meta had leveraged its messaging dominance to protect its position in the digital advertising market. Subsequently, the NCLAT reinstated the regulator's user-choice requirements, granting WhatsApp a three-month period to implement the required safeguards. Meta and WhatsApp are contesting both the financial penalty and the compliance obligations resulting from the CCI's decision. The case is being closely monitored as it is expected to shape the regulatory landscape for data-sharing practices among large technology companies operating multiple consumer platforms in India.