The Supreme Court of India on Monday raised serious concerns over data-sharing practices of Meta Platforms and its messaging service WhatsApp while hearing their appeal against a monetary penalty imposed by the Competition Commission of India (CCI).
The appeal challenges a Rs 213.14 crore penalty imposed by the CCI over WhatsApp’s 2021 privacy policy update, which mandated data sharing with Meta for advertising and business purposes.
Court’s Observations on Privacy Policy
A bench led by Chief Justice Surya Kant made strong oral observations regarding the policy, questioning whether users were given a meaningful choice. The Chief Justice remarked that compelling users to accept data sharing in order to continue using the service amounted to a problematic practice.
The bench expressed concern that ordinary citizens, including small traders and street vendors, could not reasonably be expected to understand the complex legal language of the privacy policy.
Demand for Assurance on Data Sharing
During the hearing, the court asked Meta and WhatsApp to consider filing an affidavit assuring that user data would not be shared with Meta entities for advertising purposes while the matter remains under judicial consideration.
The bench also questioned the commercial value of user data and how such information is monetised by large technology companies.
Government’s Stand
The Solicitor General of India, appearing in the matter, supported the regulatory action and highlighted concerns regarding the potential exploitation of Indian users through mandatory data-sharing arrangements.
The court subsequently impleaded the Ministry of Electronics and Information Technology in the case, noting that data protection and digital governance issues require broader institutional input.
WhatsApp and Meta’s Defence
Senior counsel representing WhatsApp argued that the 2021 privacy policy was transparent and included opt-out options for certain features. The company maintained that user privacy is governed by data protection laws and should not be conflated with competition law proceedings.
Meta’s legal team contended that the policy did not force users to share personal messages and that end-to-end encryption remained intact.
CCI Penalty Background
The CCI had imposed the penalty after concluding that WhatsApp abused its dominant position by making data sharing with Meta a condition for continued use of the service, thereby limiting user choice.
The regulator also ordered WhatsApp to modify its privacy policy to ensure greater transparency and fairness.
Next Hearing
The Supreme Court adjourned the matter to February 9 for further hearing. No interim relief has been granted to Meta or WhatsApp at this stage.
The case is being closely watched as it could have significant implications for digital privacy, competition law, and the regulation of global technology companies operating in India.
