NCLAT Halts CCI's WhatsApp Ban, Meta to Review Future Actions
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Synopsis
On January 23, 2023, Meta expressed support for the NCLAT's decision to stay the CCI's ban on WhatsApp, which had been imposed due to data-sharing practices. The company plans to assess its next course of action while maintaining a commitment to support businesses utilizing its platform.
Key Takeaways
- NCLAT suspends the CCI ban on WhatsApp.
- Meta will evaluate its next steps.
- The ban could disrupt WhatsApp's operations in India.
- The upcoming data protection law may alleviate privacy concerns.
- Meta has already paid part of the imposed penalty.
New Delhi, Jan 23 (NationPress) The company led by Mark Zuckerberg, Meta, expressed its approval of the National Company Law Appellate Tribunal (NCLAT)'s ruling on Thursday to suspend the ban enforced by the Competition Commission of India (CCI) against WhatsApp, stating it will assess its forthcoming actions.
The CCI had previously placed a five-year prohibition on WhatsApp due to its data-sharing policies.
“We appreciate the NCLAT’s choice to grant a partial suspension of the Competition Commission of India’s (CCI) directive,” a Meta spokesperson noted in a statement provided to IANS.
“While we will consider our next steps, our priority remains on discovering a way forward that aids millions of businesses reliant on our platform for growth and innovation, in addition to delivering the exceptional experiences users expect from WhatsApp,” the statement continued.
In granting the stay on the ban, the NCLAT panel, headed by Justice Ashok Bhushan, remarked that the prohibition could hinder WhatsApp's business operations within the nation. WhatsApp boasts over 500 million active users each month in India.
The appellate tribunal also instructed Meta to submit 50 percent of the ₹213 crore fine imposed by the CCI within a fortnight.
The social media titan has already remitted 25 percent of the penalty. The previous week, the NCLAT had reserved its judgment regarding a plea from Meta and WhatsApp seeking a stay on the CCI ruling that levied a ₹213 crore fine for “abusing a dominant position”.
The tribunal indicated that the forthcoming data protection legislation in India might resolve concerns surrounding data privacy. WhatsApp’s 2021 Privacy Policy permits user data to be shared with affiliated companies such as Meta and Instagram without an “opt-out” feature.
Earlier in the month, the social media company Meta appealed to the NCLAT against the CCI ruling. In November of the previous year, the competition authority ordered WhatsApp to refrain from sharing user data collected on its platform with other Meta products or businesses for five years, alongside imposing a penalty of ₹213.14 crore on Meta for allegedly abusing its dominant position.
Meta informed the NCLAT that the CCI ruling has broad implications for the entire industry, thereby necessitating an urgent hearing on the matter.
Last year, following the CCI's directive against WhatsApp sharing user data collected on its platform with other Meta products or companies for advertising purposes over five years, the social media platform expressed disagreement with the CCI ruling and intended 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, alongside an expanded data collection scope.
