NCLAT admits Meta, WhatsApp appeals against Rs 213-cr penalty

New Delhi

The National Company Law Appellate Tribunal (NCLAT) on Thursday admitted appeals filed by Meta Platforms and WhatsApp challenging the Rs 213.14 crore penalty imposed by the Competition Commission of India (CCI) for market dominance abuse.

The CCI had fined Meta and WhatsApp in November 2024, accusing the companies of unfair practices related to WhatsApp's 2021 privacy policy update. The companies argued that the CCI overstepped its jurisdiction by addressing privacy policy issues already under review by the Supreme Court. They also contended that the CCI had not conducted an "effect analysis" to assess the impact of the business practices in question.

Senior Advocates Kapil Sibal and Mukul Rohatgi, representing Meta and WhatsApp, requested an immediate stay on the penalty, claiming that the ruling could harm their business models. They emphasized that WhatsApp's services are free and argued that the data-sharing practices between Meta and WhatsApp are benign and essential for the companies' survival.

However, the CCI opposed the stay, arguing that the case does not overlap with the Supreme Court's privacy case and that competition law addresses business data, not personal data.

The NCLAT bench, led by Chairperson Justice Ashok Bhushan, stated that it would decide on the interim relief next week. The CCI order is set to be implemented by February 19, unless stayed.