Zoho CEO Sridhar Vembu Criticizes WhatsApp's Encryption Claims Amid Meta Lawsuit
Zoho Corporation CEO Sridhar Vembu has entered the heated debate surrounding WhatsApp's encryption practices, pointing to what he describes as a fundamental conflict of interest within Meta's advertising-centric business model. His intervention comes at a critical moment when a significant lawsuit has been filed against the social media giant in a United States district court located in San Francisco.
The Core of the Controversy: Advertising vs. Privacy
Vembu articulated his perspective on the social media platform X, emphasizing a structural issue rather than technical flaws. "As a general principle, when you rely on ads based on user habits, privacy can never be the first priority. The conflict of interest is real and serious," he stated. He further elaborated that the immense pressure from public markets to deliver ever-increasing profits to support what he termed "astronomical valuations" makes it "naive to assume that these companies will put user privacy first."
This critique is particularly noteworthy because Vembu's own company, Zoho, operates on a subscription-based revenue model that deliberately avoids advertising, positioning privacy as a foundational principle rather than a secondary concern.
Legal Battle: Whistleblower Allegations and Meta's Defense
The lawsuit, which spans fifty-one pages, was filed on Friday and accuses Meta of systematically misleading billions of WhatsApp users worldwide about the true nature of their privacy protections. Plaintiffs from several nations, including Australia, India, Mexico, and South Africa, contend that WhatsApp's much-publicized end-to-end encryption is essentially a facade.
The legal complaint cites information from unnamed whistleblowers who allegedly reveal that Meta employees can request and obtain access to user messages through an internal company system. According to the allegations, workers merely need to submit a task request to the engineering team, which then grants access "often without any scrutiny at all." Once access is granted, the lawsuit claims employees can view messages in real-time through a specialized widget, with no separate decryption process required. Messages reportedly appear intermingled with content from unencrypted sources, accessible from the very moment users first activated their accounts.
Meta has responded to these allegations with forceful denial. Communications director Andy Stone labeled the claims "categorically false and absurd," asserting that WhatsApp has utilized the Signal protocol for encryption for an entire decade. The company has also indicated it plans to seek sanctions against the lawyers representing the plaintiffs, dismissing the legal action as a "frivolous work of fiction." Beyond this statement, Meta has not issued a more detailed formal public response. The lawsuit is actively seeking class-action status and substantial financial damages.
Industry Reactions: Musk and Durov Voice Concerns
The controversy has reverberated throughout the global technology industry, attracting commentary from other prominent figures. Elon Musk publicly cautioned users against relying on WhatsApp, describing the platform as insecure and even casting doubt on the reliability of Signal, the protocol it uses. Telegram CEO Pavel Durov offered characteristically blunt criticism, stating, "You'd have to be braindead to believe WhatsApp is secure in 2026." Durov claimed that Telegram's own analysis of WhatsApp's encryption implementation uncovered "multiple attack vectors," suggesting vulnerabilities in its security framework.
The Structural Argument: Business Model as the Root Cause
What makes Vembu's analysis particularly compelling is its focus on the underlying economic incentives rather than software code. He highlights a pervasive structural problem: a corporation whose primary revenue stream depends on tracking and analyzing user behavior will inevitably face internal and external pressures to prioritize data collection over genuine privacy protection. This conflict is embedded in the very DNA of advertising-driven platforms, creating an environment where privacy assurances may be compromised by commercial imperatives.
The ongoing legal battle and the vocal criticism from industry leaders like Sridhar Vembu, Elon Musk, and Pavel Durov underscore a growing global scrutiny of big tech's privacy practices. As the lawsuit progresses through the US court system, it promises to keep the spotlight firmly on the complex relationship between user privacy, corporate business models, and the technological promises made to billions of people worldwide.
