CCI Seeks NCLAT’s Clarity on Whether Privacy Rules also Govern Ad-Linked Data Sharing by WhatsApp

The ongoing issue between WhatsApp LLC, Meta Platforms Inc., and the Competition Commission of India (CCI) has taken a fresh turn, with the CCI seeking clarity from the National Company Law Appellate Tribunal (NCLAT) on whether privacy safeguards apply to advertising-linked data sharing.

The development comes against the backdrop of NCLAT’s interim order that stayed the CCI’s five-year prohibition on WhatsApp sharing user data with Meta for advertising purposes, while requiring the companies to deposit 50% of the ₹213.14 crore penalty imposed.

In its plea, the CCI has asked the appellate tribunal to specify whether the privacy safeguards emphasised in the judgment, such as user consent, transparency, and opt-out mechanisms, apply equally to data used for targeted advertising.

The regulator pointed out that the tribunal’s language could suggest a uniform standard across both advertising and non-advertising data, a determination that would significantly influence how platforms design their consent frameworks.

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The November 4 ruling had been a partial victory for WhatsApp and Meta. While the tribunal set aside the blanket ban on advertising-linked data sharing, it upheld the ₹213.14 crore penalty imposed by the CCI and maintained several compliance requirements.

These included obligations to ensure user choice, disclose the purposes of data sharing, and provide clear policy updates. The bench reasoned that a complete prohibition could disrupt WhatsApp’s business model, which relies on advertising to support free services.

The CCI’s latest move underscores the regulatory tension between competition law and privacy regulation in India’s digital economy. The Commission has maintained that its proceedings are directed at curbing anti-competitive conduct rather than enforcing privacy standards.

However, the overlap between the two domains has become increasingly evident, particularly in cases involving large technology platforms where data practices directly affect market dynamics.

The tribunal has allowed WhatsApp and Meta time to file formal objections to the CCI’s application, and the matter has been listed for further hearing in December. In parallel, the tribunal has also issued notice in another application filed by the companies seeking redaction of certain confidential portions of the judgment.

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