NCLAT Grants Stay on CCI's WhatsApp Ban, Meta to Consider Future Actions
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Synopsis
Meta has welcomed the NCLAT's decision to suspend the CCI's ban on WhatsApp, imposed due to data-sharing practices. The company emphasizes its commitment to supporting businesses while evaluating further steps in response to the ruling.
Key Takeaways
- NCLAT stayed CCI's five-year ban on WhatsApp.
- Meta to evaluate next steps after ruling.
- WhatsApp has over 500 million users in India.
- NCLAT instructed Meta to pay 50% of the imposed penalty.
- Upcoming data protection law could alleviate privacy concerns.
New Delhi, Jan 23 (NationPress) Meta, overseen by Mark Zuckerberg, expressed its approval of the National Company Law Appellate Tribunal's (NCLAT) ruling to suspend the ban mandated by the Competition Commission of India (CCI) on WhatsApp, stating it will assess subsequent actions.
The CCI had imposed a five-year prohibition on WhatsApp for its data-sharing methods.
“We appreciate the NCLAT’s decision to grant a partial stay on the CCI’s order,” a Meta representative declared in a statement provided to IANS.
“As we consider our next steps, our primary objective remains to identify a way forward that fosters the growth and innovation of the millions of businesses relying on our platform, while delivering the high-quality experiences that users anticipate from WhatsApp,” the statement continued.
In granting the stay on the ban, the NCLAT panel, chaired by Justice Ashok Bhushan, noted that the ban could jeopardize WhatsApp's operational framework in India. Currently, WhatsApp boasts over 500 million monthly active users in the country.
The appellate tribunal also instructed Meta to pay 50 percent of the Rs 213 crore fine imposed by the CCI within a fortnight.
The social media titan has already settled 25 percent of the fine. Last week, the NCLAT reserved its ruling on a request by Meta and WhatsApp for a stay on the CCI's order, which levied a penalty of Rs 213 crore for “abusing dominant market position.”
The tribunal indicated that the forthcoming data protection legislation in India might mitigate concerns about data privacy. WhatsApp’s 2021 Privacy Policy facilitates user data sharing with affiliated companies like Meta and Instagram without an option to “opt-out.”
Earlier this month, Meta approached the NCLAT against the CCI's decision. In November of the previous year, the competition authority mandated WhatsApp to refrain from sharing user data collected on its platform with other Meta entities for advertising purposes for five years, in addition to imposing a fine of Rs 213.14 crore on Meta for purportedly manipulating its dominant position.
Meta informed the NCLAT that the CCI's ruling could have significant implications for the industry at large, necessitating an urgent hearing.
Last year, following the CCI’s directive for WhatsApp not to share user data with other Meta products for five years, the social media platform expressed its disagreement with the CCI’s ruling and indicated plans to appeal.
The CCI initiated an investigation in March 2021 into WhatsApp's updated privacy policy, which mandated data sharing with Facebook (now Meta) and its subsidiaries, along with an expanded data collection protocol.
