The Supreme Court on Monday deferred (*23*) in pleas filed by WhatsApp and its mum or dad firm Meta Platforms challenging the ₹213.14 crore penalty by Competitors Fee of India (CCI) over the messaging platform’s 2021 privateness coverage. The matter has now been listed for (*23*) on 23 February.
A bench led by Chief Justice of India Justice Surya Kant, which was earlier anticipated to cross instructions in the case, adjourned the (*23*) due to the unavailability of senior advocate Kapil Sibal, who’s showing for Meta and WhatsApp.
The case relates to WhatsApp’s controversial 2021 privateness coverage replace, which allowed the sharing of consumer information, together with cellphone numbers, system data and interactions with enterprise accounts with Meta firms on a “take-it-or-leave-it” foundation. The coverage triggered widespread issues over privateness and competitors.
Performing on these issues, the CCI took suo motu cognisance in March 2021 and ordered an investigation into whether or not WhatsApp had abused its dominant place in the messaging market. The probe finally led to the imposition of a penalty on Meta and WhatsApp.
In the course of the earlier (*23*) on 3 February, the Supreme Court issued a stern warning to Meta and WhatsApp, indicating that they can’t be permitted to share consumer information for promoting functions underneath the 2021 coverage. The bench, additionally comprising Justice Joymalya Bagchi and Justice Vipul Pancholi, informed Meta that any continued sharing of WhatsApp consumer information for promoting wouldn’t be tolerated.
The court docket had requested Meta and WhatsApp to file an affidavit giving a transparent endeavor that consumer information wouldn’t be shared for promoting functions, warning that failure to achieve this might outcome in dismissal of their pleas. Nevertheless, after the businesses sought time to reply to the court docket’s queries, no last order was handed.
In November 2024, the CCI fined Meta and WhatsApp ₹213.14 crore, holding that WhatsApp abused its dominant place by forcing customers to settle for expanded information sharing with Meta as a situation for persevering with to use the app. The regulator discovered the consent obtained underneath the coverage to be coerced and dangerous to competitors.
Meta and WhatsApp challenged the order earlier than the Nationwide Company Regulation Appellate Tribunal (NCLAT). In its 4 November ruling, NCLAT largely upheld the CCI’s findings and the penalty however put aside a five-year ban on WhatsApp sharing consumer information with Meta firms for promoting. The tribunal later clarified that consumer consent is necessary for each promoting and non-advertising information sharing.
Each Meta and the CCI approached the Supreme Court, with the regulator challenging the lifting of the five-year ban and Meta contesting the findings and penalty.
If the apex court docket finally upholds the CCI’s findings and bars information use for promoting, it might have important implications for Meta’s India enterprise, the place its platforms collectively serve practically 850 million customers.
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