The National Company Law Appellate Tribunal will decide on May 13 whether to hear an appeal by Meta Platforms against the Competition Commission of India’s ban on its messaging platform WhatsApp’s data-sharing practices before or after new digital personal data protection rules are enforced.
A bench led by appellate tribunal chairperson Justice Ashok Bhushan said Monday it will examine whether there is an overlap between the CCI’s jurisdiction and the forthcoming data protection framework.
Senior advocate Kapil Sibal, appearing for Meta, argued that the new rules would govern data privacy and sharing, making it more appropriate to hear the case after their enforcement. Meta has maintained that the CCI lacks the authority to rule on privacy policy matters, which would fall under the upcoming data protection rules.
However, the CCI’s counsel opposed any delay and asserted that the case should proceed immediately, without waiting for the new regulations.
If the appellate tribunal finds an overlap and decides to hear the case only after the new rules come into effect, it would be a significant victory for Meta in this legal battle.
The ministry of electronics and information technology released the draft Digital Personal Data Protection Rules, 2025, in January, inviting public feedback. The rules will facilitate implementation of the Digital Personal Data Protection Act, 2023, by setting guidelines for how companies (data fiduciaries) should handle personal data and what rights individuals (data principals) have over their information.
The draft rules focus on better data protection, accountability, and transparency in how digital personal data is collected, stored, and shared. IT minister Ashwini Vaishnaw said in January that the government aims to implement these rules by mid-2025.
Meta’s legal challenge
Meta challenged the CCI’s November 18, 2024, order, which banned WhatsApp from sharing user data with its other platforms Facebook and Instagram for advertising and imposed a ₹213 crore penalty.
The appellate tribunal temporarily lifted the five-year ban imposed by the CCI in January, but did not stay the penalty portion of the ruling. Meta was ordered to deposit 50% of the ₹213 crore fine to secure the stay, having already paid 25% of the amount to the CCI. If Meta wins the case, the deposit will be refunded.
Meta has also contended that restricting data-sharing would disrupt businesses that rely on WhatsApp interactions for targeted advertising on Facebook and Instagram. Meta further said that implementing the CCI’s remedy could force it to pause or roll back key features, affecting its business operations in India.
The CCI had ruled that WhatsApp’s 2021 privacy policy update helped Meta strengthen its dominance in messaging and online advertising (Facebook and Instagram). The regulator deemed the policy unfair because it forced users to accept data-sharing with Meta without an opt-out option, violating user autonomy and competition norms.
The CCI also barred WhatsApp from making data-sharing mandatory for users to access the app, reinforcing the importance of user consent.