An Indian tribunal on Thursday temporarily lifted restrictions that would have prevented WhatsApp from sharing user data with its parent company, Meta. This decision marks a notable win for Mark Zuckerberg’s social media empire in India, its largest market by user base.
The National Company Law Appellate Tribunal (NCLAT) overturned a five-year ban previously imposed by India’s antitrust regulator. The regulator had accused WhatsApp of misusing its dominant position in the market through its 2021 privacy policy, which expanded data sharing with Meta’s platforms.
India is a critical market for both Meta and WhatsApp, with over 700 million monthly active users, according to Sensor Tower. The controversy began when WhatsApp required users to accept its updated privacy policy or lose access to the app. Unlike users in Europe, Indian users were not given the option to opt out of this data sharing, a distinction that regulators flagged as problematic.
In November, the Competition Commission of India (CCI) ruled that WhatsApp’s privacy policy amounted to an abuse of market dominance by forcing users into greater data sharing without alternatives. The CCI identified Meta as a dominant player in two key areas in India: smartphone-based messaging apps and online display advertising.
While granting temporary relief, the tribunal instructed Meta to deposit approximately $12.35 million—half of the original penalty—within two weeks. The case is scheduled for further hearing on March 17.
Justice Ashok Bhushan, who leads the tribunal, expressed concerns that the five-year ban could jeopardize WhatsApp’s free messaging service model. Meta’s legal team argued that India’s upcoming digital privacy law, set to take effect later this year, should govern such issues instead of current competition regulations.
A Meta spokesperson welcomed the tribunal’s decision, stating, “We appreciate the NCLAT’s partial stay on the CCI’s order. While we continue to assess our next steps, our focus remains on supporting millions of businesses that rely on our platform for growth and innovation, as well as delivering the high-quality experiences users expect from WhatsApp.”
