An Indian appeals tribunal, the National Company Law Appellate Tribunal (NCLAT), has temporarily suspended a five-year data-sharing ban imposed by the Competition Commission of India (CCI) on WhatsApp and its parent company, Meta Platforms. The CCI’s directive, issued in November, prohibited WhatsApp from sharing user data with Meta entities like Facebook and Instagram for advertising purposes.
Meta and WhatsApp had challenged the antitrust ruling, arguing that the ban could severely disrupt their business operations in India. The appeals tribunal noted that the directive could lead to the “collapse” of WhatsApp’s business model in the country. Meta argued that WhatsApp might have to scale back or suspend certain features and limit its ability to deliver personalized ads on Facebook and Instagram if the ban remained in place.
In response to the tribunal’s interim ruling, a Meta spokesperson expressed approval, stating, “We welcome the interim ruling and will evaluate next steps.”
The tribunal also mandated that WhatsApp provide an opt-out option for its users regarding the controversial 2021 privacy policy update, in compliance with the earlier CCI order.
The Competition Commission of India has yet to issue a statement on the tribunal’s decision.
