Meta challenges CCI's Rs 213 Cr fine in NCLAT over WhatsApp privacy concerns

Meta, the parent company of WhatsApp, has approached the National Company Law Appellate Tribunal (NCLAT) to challenge a Rs 213 crore fine imposed by the Competition Commission of India (CCI). 

The fine was levied for alleged abuse of market dominance concerning WhatsApp's 2021 privacy policy. Meta has requested an urgent hearing of the case, citing its potential implications and the stakes involved. The NCLAT bench, headed by Justice (Retd) Ashok Bhushan, is scheduled to hear the case on January 16.

The fine stems from the CCI's investigation into WhatsApp’s privacy policy update, which the anti-trust regulator contends was neither transparent nor based on the voluntary consent of users. According to the CCI, the policy allowed for excessive data collection, potentially infringing upon consumer rights and leading to "stalking" for targeted advertising. 

The regulator also expressed concerns that users were not given the option to object or opt out of specific data-sharing terms, which could lead to a reduction in consumer data protection and control over personal information.

The CCI's inquiry into the matter began in January 2021, following news reports regarding the updated policy. The regulator emphasized that the privacy policy’s provisions could reduce the quality of consumer protection, which falls under anti-trust law. WhatsApp and Facebook had previously challenged the CCI’s decision to investigate the issue, arguing that the matter was already being examined by both the High Court and the Supreme Court. 

However, in April 2021, the Delhi High Court’s single-judge bench refused to halt the investigation, allowing the CCI’s probe to proceed. Now, Meta seeks to overturn the decision, with the NCLAT set to hear its appeal next week.