NCLAT Admits CCI Clarification: WhatsApp Advertising Data Sharing also Subject to Opt‑Out and Revocable Consent [Read Order]

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, has delivered a crucial clarification in the ongoing competition law proceedings involving WhatsApp LLC and its parent company Meta Platforms.

By allowing the Competition Commission of India’s (CCI) application, the Tribunal has extended the scope of remedial directions, originally confined to non-advertising data sharing, to also cover advertising-related uses of WhatsApp user data.

The dispute stems from WhatsApp’s 2021 Privacy Policy, which mandated broad and vague data sharing with Meta as a condition of using the messaging service. The CCI found this policy to be anti‑competitive, holding that it imposed unfair conditions on users under Section 4(2)(a)(i) of the Competition Act, 2002, and denied market access to competitors under Section 4(2)(c).

The Commission’s order of November 2024 imposed remedial directions, including a five‑year ban on advertising‑related data sharing (para 247.1) and a set of user‑choice remedies for non‑advertising purposes (paras 247.2.1–247.2.4).

On appeal, NCLAT in November 2025 upheld the user‑choice remedies but set aside the five‑year advertising ban, reasoning that once users were given opt‑in and opt‑out rights, the blanket prohibition became redundant.

However, the Tribunal’s operative conclusion in para 264(c) created uncertainty: while the ban was removed, it was unclear whether the user‑choice remedies applied to advertising data sharing. This ambiguity prompted the CCI to apply for clarification.

The CCI argued that the Tribunal’s own reasoning in paras 241.1, 241.3, and 241.4 repeatedly emphasised that “any non‑essential collection or cross‑use (like advertising) can occur only with the concerned user’s express and revocable consent.” Therefore, it contended that the remedies in paras 247.2.1–247.2.4 must logically extend to advertising data sharing as well. Without such clarification, WhatsApp and Meta could interpret the judgment narrowly, limiting user safeguards to non‑advertising purposes alone.

NCLAT agreed with the Commission’s interpretation. It clarified that the remedial directions requiring user optionality, revocable consent, and transparency obligations apply to all non‑WhatsApp purposes, including advertising. In effect, the Tribunal closed the gap left by setting aside para 247.1, ensuring that advertising data sharing is not exempt from the safeguards designed to restore user choice.

WhatsApp and Meta had opposed the clarification, arguing that the application amounted to a disguised review, which the Tribunal is not empowered to entertain. They contended that the judgment was clear and self‑contained, and that extending remedies to advertising data sharing would impose new obligations not contemplated in the original order. They also warned of adverse business impacts, citing technical challenges and potential disruption to product architecture.

The Tribunal rejected these objections, noting that its own reasoning consistently tied advertising data sharing to the principle of user consent. By allowing the clarification, NCLAT underscored that the remedies were not being expanded but merely aligned with the judgment’s stated rationale.

The clarification has far‑reaching implications for WhatsApp’s operations in India. Advertising‑related features such as “Click to WhatsApp” (CTWA) ads, which involve limited data sharing with Meta, must now comply with the same opt‑out and transparency obligations as non‑advertising data uses. Users will retain the right to decide whether their data is shared for advertising purposes, with the ability to revoke consent at any time.

By allowing the CCI’s clarification application, NCLAT has ensured that WhatsApp’s advertising‑related data sharing practices are subject to the same user‑choice safeguards as non‑advertising uses.

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