Mint interpreter: Why does NCLAT upgrade CCI prohibiting WhatsApp data sharing practice?

NCLAT’s decision is a major relief of the US technology giant. The giant has 850 million to 350 million user bases on Facebook, and has more than 500 million on WhatsApp.

Mint Explain the decision of the entire case and NCLAT.

What is NClat’s judgment?

NCLAT Chairman Ashok Bhushan and technical member Arun Baroka temporarily retained the November 18 order of CCI. The command was banned from the company owned by Yuan.

Guarantee Bleak213.14 million fines, the appeal court instructed Meta to pay a 50 % fine within two weeks. If Meta won the case, the amount can be refunded.

NClat maintains a part of the CCI ruling and confirms that the user chooses to exit data sharing. It ordered a social message transmission application to clarify its data sharing practice, so that users control their choices more.

NClat also suggested that the two parties have modified with the appeal court, especially in view of the upcoming “Digital Personal Data Protection Law”, “2023” (DPDP bill).

Why does NCLAT rule in favor of Meta?

NClat’s decision was affected by the ruling of the Supreme Court in February 2023. The ruling declined to retain the 2021 privacy policy of WhatsApp and instructed the company to ensure that users who disagreed with new clauses would not lose services before they implemented a new data protection system. Essence WhatsApp’s commitment confirms that it will not limit the function for users who do not accept updates and will regularly display and strengthen their choices.

The Appeal Court acknowledged that WhatsApp provides free services, and the five -year ban may destroy its business model and affect its commercial sustainability in India.

The bankruptcy court also considered the upcoming DPDP bill, which is expected to fully solve the data privacy problem. It recommends that new laws can regulate the current controversial issues.

Why is CCI fine Yuan?

CCI has abused its dominant market position through WhatsApp’s 2021 privacy policy. CCI found that updates forced users to accept expansion data sharing of other metad companies such as Facebook and Instagram (Instagram) without providing options to choose from. This is considered to be abusing WhatsApp’s dominance in the market in the market, which makes META’s unfair advantage in online advertising and stifling competition.

The update also violates user autonomy through the use of mandatory data sharing with WhatsApp, thereby restricting users’ ability to make wise decisions on data.

The CCI ruling also instructed WhatsApp provided the withdrawal option to follow the SUO Motu order to complete the regulatory agency. The order began to investigate whatsApp was privacy policy in 2021 in the 2002 “Competition Law” in 2002.

According to the law, what is the power of CCI?

CCI originated from the “Competition Law” in 2002, especially Section 4, which involves the dominant position of abuse. The 4th (2) (a) (i), 4 (2) (c), and 4 (2) (2) (E). Due to the compulsory data sharing conditions of WhatsApp, the market access and utilization advantages are denied to enable Meta Online benefits from online. advertise.

The decision also reflects the transformation of the CCI method. Now, it believes that privacy is the influencing factor of the competition law, and acknowledge that privacy standards will affect market dynamics and consumer benefits.

This transformation originated from reports such as the 2019 Competition Law Review Committee and a report on market research on telecommunications in 2021. The report states that privacy will affect competition, especially when companies that dominate the privacy standards.

How to respond?

Meta said that the CCI ruling may seriously affect its operation in India, especially its ability to provide personalized advertising on Facebook and Instagram, which depends on data shared through WhatsApp. Meta believes that the ruling may force the company to retreat and destroy the business feasibility of WhatsApp in India.

Meta also believes that the CCI survey began without user complaints. The company pointed out that its users did not cause concerns about the policy.

Therefore, Meta decided to appeal CCI’s ruling in NCLAT.

At the hearing, the Meta legal team led by senior advocate Mukul Rohatgi and Kapil Sibal emphasized the announcement of announced the announcement of digital personal data protection rules in 2025 in 2025, and is expected to be mid -2025. They believe that before formulating new legislation, the CCI ruling should be extended because it can replace the current instructions.

Meta also pointed out that the policy update of 2021 was largely extended by WhatsApp’s 2016 policy, without significant changes.

WhatSApp’s data sharing of 2016 and 2021 is?

WhatsApp’s 2016 privacy policy allows friends to provide friends advice and targeted advertisement data sharing through Facebook, and provide 30 -day exit window. After August 2016, new users cannot choose to exit data sharing.

However, the update in 2021 requires users to accept new clauses to continue using WhatsApp without choosing to withdraw options. It has expanded data sharing with Yuan Company for personalized advertising and service improvement, which has caused extensive criticism and CCI investigation.

Why does the Supreme Court intervene?

In 2016, the petitioner Karmanya Singh Saren and Shreya Sethi proposed the WhatsApp’s privacy policy in the Delhi High Court, which believed that this violated the right to privacy. The High Court refused to intervene, and the case was transferred to the Supreme Court.

In February 2021, the Supreme Court instructed WhatsApp to publicize its commitment in 2021 and ensure that users who do not accept new policies will not face restrictions before formulating new data protection laws. The court also instructed WhatsApp published this business in five national newspapers. The trade union government requires delay because it is expected to introduce the digital data protection bill in 2022 in the parliament.

What is it before?

NClat has been awarded temporary relief from Meta, but the case is planned to be further reviewed on March 17, 2025. CCI can now choose to ask the Supreme Court to question the NCLAT ruling. This may lead to a long -term legal struggle, especially before the five judges of the Supreme Court’s five judges’ constitutional seats continued to challenge the privacy policy of 2021 in 2021.