corporate law
The Competition Commission of India (CCI) has taken significant action against WhatsApp concerning its data-sharing practices, directly impacting the relationship between WhatsApp and its parent company, Meta. This blog summarizes the CCI's order, the current legal situation, and the Government of India’s response to the ongoing debate surrounding user data privacy.
The CCI issued an order under Section 27 of the Competition Act, 2002, which prohibits WhatsApp from sharing user data with Meta and its related products for advertising purposes for a period of five years. This mandate takes effect on November 18, 2024. The decision stems from concerns regarding WhatsApp's 2021 privacy policy and its practices related to data sharing.
The order is currently being contested in the National Company Law Appellate Tribunal (NCLAT). In light of this challenge, the NCLAT has granted an interim stay on the CCI's directive regarding the restriction on data sharing for advertising purposes. As a consequence, the issue remains sub-judice, meaning it is still under judicial consideration.
In response to concerns regarding the enforcement of the CCI's order, the Minister of Corporate Affairs, Smt. Priyanka Chaturvedi, posed an unstarred question in the Rajya Sabha. The question addressed:
In reply, Shri Harsh Malhotra, Minister of State in the Ministry of Corporate Affairs and Ministry of Road Transport and Highways, confirmed that:
The ongoing legal proceedings concerning WhatsApp's data-sharing practices and the implications of the CCI's order highlight the critical intersection of technology, privacy, and law. As the case unfolds in the NCLAT, stakeholders eagerly await further developments, particularly regarding measures to safeguard user data and comply with regulatory expectations.