NCLAT Upholds CCI Direction For WhatsApp Users To Opt Out of 2021 Policy

The National Company Law Appellate Tribunal (NCLAT) has ruled that WhatsApp users in India must have the option to opt out of its 2021 data-sharing policy, which shares user data with parent company Meta.

This decision follows an appeal by Meta and WhatsApp against the Competition Commission of India’s (CCI) order, which imposed a ₹213.14 crore penalty for alleged market abuse.

While NCLAT stayed a five-year ban on WhatsApp’s data-sharing practices, citing potential harm to its business model, it upheld key transparency mandates.

WhatsApp must disclose data-sharing details and offer users an opt-out option via in-app settings. 

The tribunal also refused to stay the penalty and directed Meta to deposit 50% of the fine.