Company Accepts Regulator’s Direction
On Monday, WhatsApp informed the Supreme Court that it will follow the Competition Commission of India (CCI) directive. The order stops the company from sharing user data with its parent firm Meta.
Earlier, the regulator had raised concerns over data privacy. Therefore, the company decided to accept the direction. It also withdrew its appeal against the November 2024 CCI order.
The commission had imposed a ₹213.14-crore penalty for unauthorised data sharing. Consequently, WhatsApp chose not to continue the legal challenge.
Appeal Withdrawal in Tribunal Case
Through senior advocate Kapil Sibal, WhatsApp told a bench led by Chief Justice Surya Kant that it is also withdrawing its challenge to the National Company Law Appellate Tribunal (NCLAT) ruling of November 2025.
The tribunal had upheld the penalty. However, it allowed WhatsApp and Meta to use subscriber data for advertising and related activities.
Meanwhile, the commission opposed that part of the decision. As a result, it filed a cross-appeal in the Supreme Court. The court has now issued notices to both companies.
Compliance Affidavit Submission
Sibal also informed the bench, which included Justice Joymalya Bagchi and Justice Vipul M. Pancholi, about the next step. According to him, WhatsApp will file a compliance affidavit by March 16.
The court recorded this assurance in its official order. Therefore, the matter will proceed after the submission.
Court Criticises Data Sharing
Earlier on February 3, the Supreme Court strongly criticised WhatsApp and Meta. The judges expressed concern over the alleged commercial use of private user data.
The court clearly warned the companies. It said they must not share any personal information. Moreover, it stated that privacy protections under the Constitution must remain intact.
Remarks on User Agreement
The bench also commented on the platform’s user agreement. It compared the policy to an “agreement between a lamb and a lion.”
According to the court, the terms were drafted in a complex manner. As a result, many users could not understand them. In particular, rural and less-educated users faced more difficulty.
Lawyers Representing the Parties
Kapil Sibal, Mukul Rohatgi, and Amit Sibal appeared for Meta and WhatsApp. Meanwhile, Solicitor-General Tushar Mehta represented the Centre.
Additionally, senior advocate Madhavi Divan appeared on behalf of the commission.