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The National Company Law Appellate Tribunal (NCLAT) on Thursday (January 23, 2025) stayed the five-year ban imposed by competition watchdog CCI on data-sharing practices between WhatsApp and Meta for advertising purposes, offering a breather to the tech giant.

Meta welcomed the “NCLAT’s decision to grant a partial stay on the Competition Commission of India’s (CCI) order” and said it would evaluate next steps.

“While we will evaluate next steps, our focus remains on finding a path forward that supports millions of businesses that depend on our platform for growth and innovation as well as providing high-quality experiences that people expect from WhatsApp,” a Meta spokesperson said.

In November, the CCI imposed a penalty of ₹213.14 crore on social media major Meta for unfair business ways with respect to the WhatsApp privacy policy update done in 2021.

Meta Platforms and WhatsApp had challenged this order before the NCLAT, which is an appellate authority over the orders passed by the CCI.

In its 156-page order, the CCI had on November 18, 2024, directed Meta to cease and desist from anti-competitive practices.

According to that CCI order, Meta and WhatsApp have also been asked to implement certain behavioural remedies within a defined timeline to address the anti-competition issues.

The regulator called for implementing various remedial measures, including barring WhatsApp from sharing data collected on its platform with other Meta companies or Meta company products for advertising purposes for five years.

Among other directions, CCI had said that sharing of user data collected on WhatsApp with other Meta companies or Meta company products for purposes other than for providing WhatsApp services shall not be made a condition for users to access WhatsApp services in India.

The counsel appearing for Whatsapp and Meta Platform requested the appellate tribunal to stay a CCI order. 

Appellate tribunal NCLAT on Thursday (January 16, 2025) admitted the petitions filed by Meta Platforms and Whatsapp against an order passed by fair trade regulator CCI which imposed a penalty of ₹213.14 crore for abuse of market dominance.

After hearing the initial submission from Meta and CCI on the issue, a two-member Bench of the National Company Law Appellate Tribunal (NCLAT) said the issue requires consideration.

“We find that the submission raised by the parties needs consideration. We admit both the appeals,” said the NCLAT Bench which also comprised its Chairperson Justice Ashok Bhushan.

However, over the interim relief to stay the CCI order, the NCLAT said it will decide next week.

During the proceedings, the counsel appearing for Whatsapp and Meta Platform requested the appellate tribunal to stay the CCI order. However, this was opposed by the counsel appearing for the Competition Commission of India (CCI).

On November 18, the CCI had imposed a penalty of ₹213.14 crore on social media major Meta for unfair business ways with respect to WhatsApp privacy policy update done in 2021.

Besides, the competition watchdog directed Meta to cease and desist from anti-competitive practices.

According to a CCI order, Meta and WhatsApp have also been asked to implement certain behavioural remedies within a defined timeline to address the anti-competition issues.

The regulator has called for implementing various remedial measures, including barring WhatsApp from sharing data collected on its platform with other Meta companies or Meta company products for advertising purposes for five years.

Among other directions, the CCI has said that sharing of user data collected on WhatsApp with other Meta companies or Meta company products for purposes other than for providing WhatsApp services shall not be made a condition for users to access WhatsApp services in India.