An Indian tribunal has temporarily lifted a five-year ban that would have prevented WhatsApp from sharing user data with its parent company, Meta, marking a major win for the social media giant in its largest market. The ruling suspends a decision made by India’s antitrust regulator, which had accused WhatsApp of misusing its market dominance through its 2021 privacy policy update.
The dispute arose when WhatsApp required users to accept broader data sharing with Meta’s platforms, which Indian users couldn’t opt out of, unlike their European counterparts. The Competition Commission of India had deemed this practice as an abuse of Meta’s dominance. While the ban is on hold, the tribunal ordered Meta to pay a $12.35 million deposit, half of the total penalty, with the next hearing scheduled for March 17.
The tribunal, headed by Justice Ashok Bhushan, expressed concern that the five-year ban could jeopardize WhatsApp’s business model, which offers the messaging service for free. Meta’s legal team argued that India’s upcoming digital privacy law, set to take effect later this year, should address such issues instead of competition regulations.
A Meta spokesperson welcomed the partial stay granted by the NCLAT on the Competition Commission of India’s (CCI) order. “While we will evaluate our next steps, our focus remains on finding a solution that supports the millions of businesses relying on our platform for growth and innovation, while delivering the high-quality experiences people expect from WhatsApp,” the spokesperson stated.
