In a significant development for Meta, an Indian tribunal halted restrictions on WhatsApp, allowing it to share user data with Meta, its parent company.
The decision by the National Company Law Appellate Tribunal (NCLAT) puts on hold a five-year ban by India’s competition watchdog. It had alleged that WhatsApp was exploiting its market supremacy through its 2021 privacy policy.
Serving as the most extensive market for both Meta and WhatsApp, India boasts a user base exceeding 700 million monthly active WhatsApp users, data from Sensor Tower reveals.
The contention emerged when WhatsApp compelled its users to agree to broadened data sharing with Meta platforms, threatening the withdrawal of service for non-compliance.
In contrast to their European counterparts, Indian users were left with no choice, a factor that sparked regulatory concerns. Following a probe in November, the Competition Commission of India labeled WhatsApp’s tough privacy update as an exploitation of Meta’s dominant position, heckling users into consenting to wider data collection without the option to opt-out.
However, while sustaining the ban on Thursday, the NCLAT instructed Meta to deposit approximately $12.35 million within two weeks — half of a more extensive penalty. The case picks up again on March 17.
Displaying anxiety over the potential harm to WhatsApp’s business model, which offers a free messaging service, the court led by Justice Ashok Bhushan, suspended the five-year ban.
Presenting their case, Meta’s attorneys suggested that India’s impending digital privacy law, due to come into effect later this year, should be at the helm rather than the competition rules.
In a statement, a Meta spokesperson welcomed the NCLAT’s decision to provide a partial stay on the Competition Commission of India’s order, promising to explore further steps while ensuring high-quality experiences for user and supporting the many businesses reliant on their platform.
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