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NCLAT Partly Sets Aside CCI Order, Retains ₹213 Crore Penalty on WhatsApp
WhatsApp: NCLAT overrules CCI's decision on WhatsApp's sharing of user data with Meta.
On Tuesday, the appellate tribunal, NCLAT (National Company Law Tribunal), overturned an order by the Competition Commission of India that had barred the messaging app from sharing data with the Meta platform for promotional purposes for five years.
NCLAT passed a 158-page order setting aside the CCI's November 18, 2024, order. The order, however, was modified by NCLAT as it deleted Section 247.1. The tribunal, however, upheld the ₹213 crore fine imposed on the company.
While delivering the order, NCLAT said, "We are setting aside the Commission's decision for violation of Section 4(2)(D) and the direction under paragraph 247.1 of the said order, which mandates that WhatsApp shall not share user data collected on its platform with any other data company or for advertising purposes for a period of five years from the date of issuance of the order."
