On Thursday, an Indian tribunal lifted restrictions that would have prevented WhatsApp from sharing user information with its parent company Meta, marking a major win for Mark Zuckerberg’s social media network in its largest user market.
The National Company Law Appellate Tribunal’s decision temporarily overturns a five-year prohibition imposed by India’s antitrust authority, which had accused WhatsApp of leveraging its market power through its privacy policy introduced in 2021.
With over 700 million monthly users, India serves as the largest market for Meta and WhatsApp, according to Sensor Tower data.
The controversy started when WhatsApp mandated that users accept broadened data-sharing terms with Meta’s services or risk losing access to the messaging platform. Unlike European users, Indian users aren’t given the option to refuse this data sharing, a situation regulators viewed as problematic.
In November, the Competition Commission of India concluded that WhatsApp’s “take-it-or-leave-it” privacy terms represented an abuse of Meta’s dominant position by compelling users to agree to increased data collection without an opt-out option.
At that time, the regulatory body identified Meta as the dominant player in two primary segments in India: “over-the-top” messaging applications on mobile devices and online display advertising.
Upon staying the ban on Thursday, the tribunal instructed Meta to pay approximately $12.35 million—half of the total penalty—within a fortnight. The case is scheduled for a follow-up hearing on March 17.
The tribunal, led by Justice Ashok Bhushan, raised concerns that the lengthy ban could jeopardize WhatsApp’s business model, which relies on providing its messaging service at no cost.
Meta’s legal representatives contended that India’s impending digital privacy legislation, expected to be enacted later this year, should take precedence over competition rules in this instance.
“We appreciate the NCLAT’s decision to partially stay the Competition Commission of India’s (CCI) order. While we will consider our next steps, our primary focus remains on discovering an approach that supports the millions of businesses reliant on our platform for growth and innovation, as well as ensuring high-quality experiences that users expect from WhatsApp,” stated a Meta spokesperson.
Compiled by Techarena.au.
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