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NCLAT Lifts WhatsAppMeta Ad-Data Ban, Upholds ₹213.14 Crore Penalty

The ruling narrows the CCI’s 2024 order to unfair-terms violations with monetary sanctions, dropping the five-year restriction on advertising data sharing.

Overview

  • The appellate tribunal set aside the CCI directive that barred WhatsApp from sharing user data with Meta companies for advertising for five years.
  • It upheld the ₹213.14 crore fine and confirmed findings that WhatsApp’s 2021 update imposed exploitative, take-it-or-leave-it terms in breach of Sections 4(2)(a)(i) and 4(2)(c).
  • The tribunal struck down the CCI’s leveraging charge under Section 4(2)(e), rejecting the claim that dominance in messaging was used to extend power in online display advertising.
  • NCLAT recognized WhatsApp’s dominance in OTT messaging and noted Meta’s close integration with WhatsApp, supporting combined liability even as Meta was not found dominant in display ads.
  • Other behavioral directions largely stand, including transparency and user controls, and the written judgment is awaited with potential appeals to the Supreme Court possible within statutory timelines.