Indian Tribunal Pauses WhatsApp Data Sharing Ban, Offering Relief to Meta
An Indian tribunal has temporarily suspended a five-year ban on data sharing between WhatsApp and its parent company, Meta Platforms. This comes as a significant win for the US tech giant, which had warned that the restriction would severely affect its advertising business.
Tribunal Grants Temporary Relief to Meta
The Competition Commission of India (CCI) imposed the data sharing ban in November, citing concerns over WhatsApp’s privacy policies. Meta, however, challenged the ruling, arguing that it lacked technical grounding. On Thursday, the National Company Law Appellate Tribunal (NCLAT) suspended the ban while Meta’s appeal continues.
The tribunal noted that enforcing the ban could “lead to a collapse” of WhatsApp’s business model. India is Meta’s largest market, with over 500 million WhatsApp users and 350 million Facebook users.
Potential Impact on Meta’s Business
Meta warned the tribunal that the ban might force the company to pause or roll back features. For example, businesses using WhatsApp to interact with customers may no longer be able to personalise ads on Facebook or Instagram, a key part of their marketing strategies.
Meta’s advertising business in India plays a significant role in its global revenue. Facebook India Online Services, Meta’s registered entity for advertising in India, reported $351 million in revenue during 2023-24, marking its highest earnings in five years.
A Meta spokesperson expressed satisfaction with the tribunal’s decision, adding that the company will assess its next steps.
Background on Privacy and Data Sharing Concerns
The controversy stems from WhatsApp’s 2021 privacy policy changes, which faced criticism for pressuring users to accept new terms or risk losing access to the service. The CCI ruled that WhatsApp must let users choose whether to share their data with Meta entities, citing concerns about user autonomy.
Meta has defended the policy, stating it was designed to clarify how optional business messaging features function, not to increase data collection or sharing.
This case echoes similar regulatory challenges Meta faced in the European Union in 2021, where WhatsApp was accused of failing to explain policy updates clearly. WhatsApp later agreed to make its changes more transparent for EU users.
What Lies Ahead
The CCI has not commented on the tribunal’s decision but may challenge the ruling in India’s Supreme Court. As the case unfolds, Meta remains focused on maintaining its business operations and relationships in its largest market.
With inputs from Reuters
