NEW DELHI — The National Company Law Appellate Tribunal (NCLAT) has overturned a key directive from India’s antitrust watchdog that prohibited WhatsApp from sharing user data with other Meta-owned entities for advertising purposes. However, the tribunal upheld a financial penalty against Meta Platforms Inc., marking a mixed outcome for the U.S. tech giant.
Background
In November 2024, the Competition Commission of India (CCI) imposed a five-year ban on WhatsApp’s data-sharing practices with Meta group companies, citing concerns over user privacy and market abuse.
Meta challenged the ruling, arguing that the CCI lacked the technical expertise to assess the implications of its order and warning that the ban could force WhatsApp to roll back key features.
Tribunal Decision
On November 4, 2025, the NCLAT ruled that the ban lacked sufficient rationale and set it aside.
The tribunal, led by Justice (Retd.) Ashok Bhushan and Member (Technical) Barun Mitra, found that the CCI’s order was overly broad and not adequately supported by evidence.
However, the fine imposed on Meta for abusing its dominant position in the OTT messaging market was upheld, reinforcing regulatory scrutiny of Big Tech’s influence in India.
Implications
WhatsApp can now resume data-sharing with Meta entities for advertising and personalization, subject to compliance with India’s data protection laws.
The ruling is seen as a partial victory for Meta, allowing it to maintain its integrated ad ecosystem while still facing financial penalties.
Privacy advocates have expressed concern over the decision, warning that it could weaken safeguards for Indian users.
