WhatsApp data privacy: SC to review Rs 213 crore CCI penalty and Meta's appeals

New Delhi: The Supreme Court of India will hear on Monday the appeals filed by Meta Platforms and WhatsApp LLC challenging a National Company Law Appellate Tribunal (NCLAT) order that upheld a ₹213.14 crore penalty imposed by the Competition Commission of India (CCI) over the messaging platform’s 2021 privacy policy and data‑sharing practices.

According to the apex court’s causelist, the case is scheduled before a Special Bench of Chief Justice of India (CJI) Surya Kant and Justices Joymalya Bagchi and Vipul M Pancholi on February 23 at 2 p.m.

Earlier, the CJI-led Bench had expressed serious concern over WhatsApp’s 2021 privacy policy and the sharing of user data by Meta Platforms, observing that the platform cannot be allowed to “play with the right to privacy” of Indian users. The observations were made during appeals against the NCLAT judgment affirming the CCI’s penalty, which cited abuse of dominant position through WhatsApp’s updated privacy terms.

The CCI has also filed a cross-appeal challenging NCLAT’s decision to the extent that it allowed WhatsApp to share user data for advertising purposes.

The apex court had described WhatsApp’s privacy framework as a “take it or leave it” arrangement, questioning the fairness and transparency of the policy. “What is the choice? You have a complete monopoly in the market, and you are saying you are giving a choice. It is either you walk out of WhatsApp, or we will share your data,” the Bench had remarked.

Highlighting the policy’s complexity for ordinary users, the Court noted: “A poor woman selling fruits on the street -- will she understand the terms of your policy? The language is so cleverly drafted that even some of us may not understand it.” The Bench termed the alleged data practices as “a decent way of committing theft of private information,” stressing that WhatsApp cannot trivialise the right to privacy protected under the Constitution.

The Court also flagged concerns over targeted advertisements appearing shortly after personal communications, even as WhatsApp maintained that messages are end-to-end encrypted and inaccessible to the platform.

Solicitor General Tushar Mehta, representing the Union government, supported the Court’s concerns, noting the growing commercial value of personal data and its exploitation.

The CJI-led Bench directed Meta and WhatsApp to submit an affidavit detailing their privacy policy framework, data-sharing mechanisms, and the manner in which user consent is obtained and communicated. The Union government has been impleaded as a party to the proceedings.

IANS