The National Company Law Appellate Tribunal (NCLAT) has postponed the hearing on the Competition Commission of India’s (CCI) case against WhatsApp’s 2021 Privacy Policy, citing the upcoming Digital Personal Data Protection (DPDP) Rules.
The tribunal will now hear the case on May 13.
In January, NCLAT stayed the CCI order which had directed WhatsApp to not share data collected on its platforms with Meta company or its products for five years.
NCLAT noted that WhatsApp is free of cost and that a five-year year ban on WhatsApp from sharing user data with Meta may lead to collapse of the business model.
NCLAT coram of Chairperson Justice Ashok Bhushan and Technical Member Arun Baroka remarked, “Ban of 5 years may lead to the collapse of business model of WhatsApp LLC since the platform is free. We are of the view that ban of 5 years need to be stayed.”
The CCI had in November 2024 imposed a penalty of ₹213 crore on Meta for WhatsApp’s 2021 Privacy Policy. The competition regulatory body had restrained WhatsApp from sharing user data with Meta for five years. It also had directed WhatsApp and Meta to “cease and desist” all anti-competitive practices.
WhatsApp’s 2021 Privacy Policy allows for user data to be shared with group cos like Meta, Insta without “opt out” option.