An Indian appellate tribunal has temporarily lifted a five-year prohibition on data sharing between WhatsApp and its parent company, Meta Platforms. This decision comes as a significant relief to Meta, which had expressed concerns that the ban could adversely impact its advertising operations.
The Competition Commission of India (CCI) had issued a directive in November that mandated this ban on data sharing for advertising purposes. Meta contested this ruling, arguing that it could force the company to retract certain features. The tech giant also criticized the CCI for lacking the “technical expertise” necessary to grasp the full implications of its decision.
On Thursday, the National Company Law Appellate Tribunal in India announced the suspension of the data sharing ban while it reviews Meta’s appeal against the antitrust ruling.
The tribunal noted that the ban “may lead to a collapse” of WhatsApp’s business model, emphasizing the potential adverse effects on the platform.
India represents the largest market for Meta, with over 350 million users on Facebook and more than 500 million on WhatsApp.
In its argument before the appeals tribunal, Meta indicated it might have to “roll back or pause” certain features that permit businesses, such as Indian fashion brands, to tailor advertisements on Facebook or Instagram based on their interactions with WhatsApp users.
Facebook India Online Services, the company entity responsible for advertising in India, reported a revenue of $351 million (approximately Rs. 3,033 crore) for the fiscal year 2023-24, marking the highest revenue in at least five years.
A spokesperson for Meta welcomed the tribunal’s ruling, stating that the company would consider its options moving forward. The CCI has not yet commented on this ruling, but it retains the right to appeal to the Supreme Court if it chooses.
In 2021, WhatsApp faced accusations of violating European Union regulations due to its failure to communicate policy changes clearly. The company subsequently agreed to clarify these changes for its European users.
The ongoing case in India began amid backlash over WhatsApp’s alterations to its privacy policy. The CCI’s November ruling determined that WhatsApp’s policy changes coerced users into accepting the new terms or risking access to the service.
Meta has maintained that the adjustments were only intended to inform users about optional business messaging features and did not enhance its capacity to collect or share data.
The regulator, however, mandated in November that WhatsApp must allow users the choice of whether or not to share their data with Meta.
© Thomson Reuters 2025
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