Meta and WhatsApp Pledge Compliance with Indian Tribunal's Data Privacy Directives
In a significant development before India's Supreme Court, Meta Platforms Inc. and its messaging subsidiary WhatsApp have formally committed to adhering to the directives issued by the National Company Law Appellate Tribunal (NCLAT). These directions extend the Competition Commission of India's (CCI) privacy and consent safeguards specifically to advertising-related user data. This commitment comes even as the technology giants continue their legal battle against certain aspects of the tribunal's ruling.
Supreme Court Proceedings and Corporate Assurance
A bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and Vipul M. Pancholi was presiding over appeals filed by Meta and WhatsApp. These appeals challenge the NCLAT's December 2025 directions. Simultaneously, the court is reviewing a cross-appeal from the CCI, which contests the tribunal's allowance for continued user data sharing for advertising purposes.
Senior counsel Kapil Sibal, representing WhatsApp, submitted to the court that the appellants had decided to implement the NCLAT's directives by March 16. In response, the bench dismissed applications seeking a stay on the NCLAT order. However, the court explicitly kept broader legal issues open for future adjudication.
"These applications essentially seek a direction for a stay of the impugned judgment of the NCLAT to the extent it approves the direction issued by the CCI directing Meta to comply with the impugned directions contained in the NCLAT order dated December 15, 2025, containing certain directions issued to Meta," Chief Justice Surya Kant stated, as quoted by PTI.
Court's Conditional Dismissal and Compliance Mandate
The Supreme Court clarified that the dismissal of the stay pleas was "without prejudice" to the substantive issues raised in the main appeal. This legal terminology means the dismissal does not affect the companies' right to argue those issues later. The court further directed Meta and WhatsApp to file a compliance report regarding the implementation of the NCLAT directions.
Additionally, the bench ordered that the appellants' affidavit concerning their privacy policy be examined by the CCI, with a formal response to be placed on the court record. This step ensures regulatory oversight during the interim period.
Background: The Rs 213 Crore Penalty and Privacy Concerns
The apex court is hearing appeals against a CCI order that imposed a substantial penalty of Rs 213.14 crore on Meta and WhatsApp. This penalty relates to WhatsApp's controversial privacy policy updates. Earlier, on February 3, the court had delivered sharp criticism against the firms, accusing them of potentially "playing with the right to privacy of citizens in the name of data sharing."
The court had also alleged that the companies were creating a monopoly and engaging in what it termed as "theft of customers' private information." Expressing strong disapproval of WhatsApp's privacy policy, the justices referred to "silent customers"—users who are unorganized, digitally dependent, and often unaware of the implications of complex data-sharing policies.
"We will not allow the rights of any citizen of this country to be damaged," the court had emphatically declared, underscoring its protective stance towards user privacy.
NCLAT's Pivotal Ruling and Its Broader Application
On November 4, 2025, the NCLAT delivered a mixed verdict. It set aside a portion of the CCI's original order that had prohibited WhatsApp from sharing user data with Meta for advertising purposes for a five-year period. However, the tribunal upheld the Rs 213 crore penalty imposed on the social media platform.
Subsequently, the NCLAT provided crucial clarification: its ruling on privacy and consent safeguards would not be limited to WhatsApp services alone. Instead, these safeguards would apply comprehensively to user data collection and sharing activities, encompassing both advertising and non-advertising purposes across Meta's ecosystem.
This case represents a critical juncture in India's ongoing efforts to regulate big tech, balance innovation with user rights, and enforce robust data protection standards in the digital age. The Supreme Court's monitoring of compliance and the pending legal arguments ensure this remains a closely watched saga with implications for millions of users and the future of digital privacy norms in the country.
