Tribunal Suspends CCI’s WhatsApp Data Sharing Ban Temporarily

An Indian appeals tribunal has suspended a data-sharing ban imposed by the Competition Commission of India. The ruling, which affects WhatsApp and Meta, allows continued data exchange for advertising. Meta argues that the ban threatened WhatsApp’s business model in India.

An Indian appeals tribunal has temporarily suspended the antitrust authority's ban on data sharing between WhatsApp and its parent company Meta Platforms' applications for advertising purposes. This move comes as a response to Meta's challenge to the Competition Commission of India's directive from November.

The five-year ban, according to Meta, could negatively impact its operations in India. The National Company Law Appellate Tribunal (NCLAT) decided to halt the ban as it reviews appeals from Meta and WhatsApp, citing that such restrictions could potentially threaten WhatsApp's business model in the country.

Meta argued that the ban might force WhatsApp to retract or suspend certain features in India, limiting the app's ability to offer personalized adverts via Facebook and Instagram. The tribunal's interim decision mandates that WhatsApp provide users an opt-out option regarding a privacy policy update instituted in 2021.

(With inputs from agencies.)