NCLAT Clarifies Scope of Remedies in WhatsApp Privacy Policy Case

The National Company Law Appellate Tribunal (NCLAT), Principal Bench in New Delhi, has clarified that remedial directions issued in the WhatsApp 2021 privacy policy case will extend to all non-WhatsApp purposes, explicitly including advertising-related data collection and sharing. The clarification follows an application filed by the Competition Commission of India (CCI) seeking to remove ambiguity from the tribunal’s earlier judgment delivered on November 4, 2025.The CCI had argued that setting aside one specific direction in its original order could be read as diluting the application of other remedies, particularly those linked to advertising. It sought confirmation that remaining corrective measures would continue to govern WhatsApp’s data-sharing practices beyond core messaging services. NCLAT agreed, noting that its earlier ruling contained a disconnect between the findings and the operative directions.

At the heart of the tribunal’s clarification is what it described as a core principle: restoring user choice. The bench reiterated that users must have control over what data is collected, how it is used, and for how long. Any non-essential data collection or cross-platform sharing, including for advertising, can only take place with explicit and revocable consent. The tribunal observed that this principle had been consistently emphasised in its findings and should be reflected clearly in the remedies.NCLAT acknowledged that while it had earlier removed a five-year advertising ban due to insufficient reasoning, it had not intended to exempt advertising-related data use from transparency and consent obligations. To correct this, the tribunal ordered the deletion of the phrase “except 247.2.1” from its conclusions. That particular provision requires WhatsApp to clearly disclose what user data is shared with other Meta entities and the specific purpose behind each type of data use. Allowing an exception, the tribunal noted, would have effectively created a carve-out for advertising, undermining its own reasoning.

WhatsApp and Meta opposed the application, contending that the CCI was seeking a review rather than a clarification and pointing to optional features such as Click-to-WhatsApp ads as evidence of user choice. The tribunal rejected these arguments, stating that it was empowered under the Competition Act to review and clarify its decisions. It also stressed that optionality must include the ability for users to opt out at any stage, aligning with the broader consent framework.With this clarification, NCLAT has directed that all remedial measures—from policy-level disclosures to consent mechanisms—apply uniformly to non-WhatsApp data use, whether for advertising or other purposes. WhatsApp has been given three months to comply with the clarified directions. The order, dated December 15, 2025, was signed by Justice Ashok Bhushan (Judicial Member) and Arun Baroka (Technical Member).