Whalesbook
Court Questions Data Privacy and Monopoly Concerns
The Supreme Court's upcoming February 23 hearing will address pleas by Meta Platforms Inc. and its subsidiary WhatsApp against a Rs 213.14 crore penalty. The penalty was levied by the Competition Commission of India (CCI) over their controversial privacy policy. A bench, led by Chief Justice of India Surya Kant, previously made sharp observations, stating that companies "cannot play with the right to privacy of citizens in the name of data sharing." The court alluded to potential market monopolization and "theft of private information" of customers. These remarks signal a stern judicial stance on data protection and competitive practices in the digital space.
Procedural History and Regulatory Appeals
Earlier, on November 4, 2025, the National Company Law Appellate Tribunal (NCLAT) had modified aspects of the CCI order. While the NCLAT upheld the Rs 213 crore penalty, it set aside a portion that barred WhatsApp from sharing data with Meta for advertising purposes for five years. The NCLAT's subsequent clarification indicated its ruling on privacy safeguards would apply broadly to user data collection and sharing for both advertising and non-advertising activities. The Supreme Court is also hearing a cross-appeal filed by the CCI challenging the NCLAT's decision to allow continued data sharing for advertising. The Ministry of Electronics and Information Technology has also been impleaded as a party to the proceedings.