Supreme Court adjourns hearing in Meta, WhatsApp pleas challenging CCI fine to 23 February

The Supreme Court on Monday deferred hearing in pleas filed by WhatsApp and its parent company Meta Platforms challenging the ₹213.14 crore penalty by Competition Commission of India (CCI) over the messaging platform’s 2021 privacy policy. The matter has now been listed for hearing on 23 February.

A bench led by Chief Justice of India Justice Surya Kant, which was earlier expected to pass directions in the case, adjourned the hearing due to the unavailability of senior advocate Kapil Sibal, who is appearing for Meta and WhatsApp.

The case relates to WhatsApp’s controversial 2021 privacy policy update, which allowed the sharing of user data, including phone numbers, device information and interactions with business accounts with Meta companies on a “take-it-or-leave-it” basis. The policy triggered widespread concerns over privacy and competition.

Acting on these concerns, the CCI took suo motu cognisance in March 2021 and ordered an investigation into whether WhatsApp had abused its dominant position in the messaging market. The probe eventually led to the imposition of a penalty on Meta and WhatsApp.

During the previous hearing on 3 February, the Supreme Court issued a stern warning to Meta and WhatsApp, indicating that they cannot be permitted to share user data for advertising purposes under the 2021 policy. The bench, also comprising Justice Joymalya Bagchi and Justice Vipul Pancholi, told Meta that any continued sharing of WhatsApp user data for advertising would not be tolerated.

The court had asked Meta and WhatsApp to file an affidavit giving a clear undertaking that user data would not be shared for advertising purposes, warning that failure to do so could result in dismissal of their pleas. However, after the companies sought time to respond to the court’s queries, no final order was passed.

In November 2024, the CCI fined Meta and WhatsApp ₹213.14 crore, holding that WhatsApp abused its dominant position by forcing users to accept expanded data sharing with Meta as a condition for continuing to use the app. The regulator found the consent obtained under the policy to be coerced and harmful to competition.

Meta and WhatsApp challenged the order before the National Company Law Appellate Tribunal (NCLAT). In its 4 November ruling, NCLAT largely upheld the CCI’s findings and the penalty but set aside a five-year ban on WhatsApp sharing user data with Meta companies for advertising. The tribunal later clarified that user consent is mandatory for both advertising and non-advertising data sharing.

Both Meta and the CCI approached the Supreme Court, with the regulator challenging the lifting of the five-year ban and Meta contesting the findings and penalty.

If the apex court ultimately upholds the CCI’s findings and bars data use for advertising, it could have significant implications for Meta’s India business, where its platforms together serve nearly 850 million users.