Saifiya Malik

Meta Platforms Inc., formerly known as Facebook, filed an appeal before the National Company Law Appellate Tribunal (NCLAT) challenging the Competition Commission of India’s (CCI) order imposing a penalty of ₹213.14 crore. The penalty, issued on November 18, 2024, arose from findings that Meta, through its subsidiary WhatsApp, abused its dominant position in implementing its 2021 privacy policy.

Senior Advocates Kapil Sibal and Mukul Rohatgi, representing Meta and WhatsApp, respectively requested that the case be heard on January 16 by a bench headed by NCLAT Chairperson Justice (retd) Ashok Bhushan, considering the significance of the matter. The advocates submitted: “The order has huge implications. We request your lordships to take it up yourself. Since it is going to affect the entire industry, please take it up on January 16.” Acceding to the request, Justice Bhushan, along with Technical Members Barun Mitra and Arun Baroka, agreed to schedule the hearing on the requested date.

The CCI’s investigation stemmed when the comission took Suo Motu cognisance of certain media reports and from an information from Ms. Prachi Kholi regarding WhatsApp’s updated terms of service and privacy policy announced in January 2021 and implemented on February 8, 2021. The update marked a significant departure from WhatsApp's 2016 policy, which allowed users to opt out of sharing data with Facebook. Under the 2021 policy, users were compelled to accept mandatory data-sharing provisions to continue accessing WhatsApp’s services. This included expanded data collection and sharing with Facebook and other Meta entities.

The CCI’s investigation concluded that WhatsApp held a dominant position in India’s smartphone messaging apps and online display advertising markets. The Commission determined that the 2021 privacy policy adopted a “take-it-or-leave-it” approach, imposing unfair terms on users in violation of Section 4 of the Competition Act, 2002. The mandatory nature of the data-sharing requirements undermined user autonomy and constituted an abuse of Meta’s dominant market position, the CCI held.

In its November 2024 order, the CCI not only levied the ₹213.14 crore penalty but also issued several cease-and-desist directives. It prohibited WhatsApp from sharing user data collected on its platform with Meta or its associated products for five years. Additionally, WhatsApp was instructed to revise its privacy policy to provide users with a detailed explanation of the specific types of data being shared, along with the corresponding purposes. The Commission directed: “This explanation should specify the purpose of data sharing, linking each type of data to its corresponding purpose.”

Moreover, the CCI mandated that WhatsApp ensure that data sharing with Meta entities would not be a pre-condition for users to access its services in India. It further specified that data collected for advertising purposes could not be used in a manner that violates the principles of user choice and transparency.

Meta’s legal team for the appeal included Senior Advocates Kapil Sibal and Mukul Rohatgi, who were briefed by Advocate Tejas Karia, a partner at Shardul Amarchand Mangaldas. The Internet Freedom Foundation, a respondent in the case, was represented by Vivek Pandey and Biyanka Bhatia of Sarvada Legal.

Case Title: Meta Platforms Inc. v. Competition Commission of India & Ors.
Case Number: NCLAT Appeal (2025) [Specific number to be updated]
Bench: Justice (Retd.) Ashok Bhushan (Chairperson), Barun Mitra (Technical Member) and Arun Baroka (Technical Member)

[View/Download COMPETITION COMMISSION OF INDIA order]