As data privacy concerns mount, CCI urges tribunal to clarify if WhatsApp must seek consent for all data-sharing—regardless of advertising use
CCI Seeks Clarification on User Consent
The Competition Commission of India (CCI) has approached the National Company Law Appellate Tribunal (NCLAT) seeking clarity on a key aspect of its recent judgement involving WhatsApp’s 2021 privacy policy update.
- CCI wants the tribunal to explicitly clarify whether user consent is mandatory for both advertising and non-advertising data-sharing purposes.
- The issue arises from potential ambiguity in the tribunal’s order, which partially overturned a previous CCI directive.
NCLAT’s Earlier Ruling: Relief and Penalty
Earlier this month, the NCLAT granted partial relief to WhatsApp, setting aside the five-year ban on sharing user data with Meta Platforms for advertising purposes.
However, it retained several key decisions from the original CCI order:
- The INR 213 Cr penalty imposed in November 2024 remains intact.
- The tribunal upheld findings of antitrust violations, citing WhatsApp’s abuse of market dominance and coercive privacy policy rollout.
Core Issue: Is Consent Needed in All Cases?
According to CCI counsel Samar Bansal, the watchdog believes that the spirit of the NCLAT judgement emphasizes that user consent is paramount—irrespective of how the data is eventually used.
- Bansal pointed out that the concluding section of the order refers to non-advertising data use, requiring consent.
- However, there is no explicit mention of advertising-related data usage, prompting the CCI to file an application for clarification.
“Our reading is that the tribunal wants consent in all scenarios. But since it’s unclear regarding advertising, we’ve asked the court to confirm that,” Bansal said.
The matter is now scheduled for next listing on November 25, when the NCLAT may provide further clarification.
The 2021 Policy Controversy
At the center of the legal battle is WhatsApp’s 2021 privacy policy update, which CCI found to be problematic for several reasons:
- Users were forced to accept new data-sharing terms in a “take it or leave it” format.
- This was seen as an abuse of WhatsApp’s dominant position, particularly as users had no alternative if they wished to continue using the platform.
In its 2024 ruling, CCI directed WhatsApp to limit compulsory data-sharing and implement measures ensuring user autonomy, especially around sharing data with Facebook-owned entities.
Timeline of Events
- 2021: WhatsApp rolls out a controversial privacy policy update.
- Nov 2024: CCI imposes INR 213 Cr penalty and restricts data-sharing for advertising.
- Jan 2025: NCLAT grants WhatsApp interim relief, staying the data-sharing ban.
- Nov 2025: NCLAT partially sets aside the ban but retains fine and antitrust findings.
- Nov 2025: CCI seeks clarification on consent requirements from NCLAT.
What’s at Stake?
The outcome of this case could redefine data-sharing norms in India, especially in the context of big tech and platform dominance. If the NCLAT clarifies that explicit user consent is required in all scenarios, it could:
- Set a precedent for future data privacy regulation
- Force platforms like WhatsApp to revamp their policies
- Strengthen user rights and data transparency in India
The CCI has asked NCLAT to clarify its ruling on WhatsApp’s data-sharing practices, specifically whether user consent is needed for both advertising and non-advertising purposes. The case centers around WhatsApp’s 2021 policy, which regulators said abused its dominance by forcing users to accept new data terms.
