New Delhi – WhatsApp has informed the Supreme Court of India that it will comply with directives issued by the Competition Commission of India (CCI) regarding data sharing practices with its parent company, Meta. The move comes after the court rebuked the messaging platform over its data sharing policy, a matter that has been contested for several years.
Senior Advocate Kapil Sibal, representing WhatsApp, told a bench led by Chief Justice Surya Kant that the company will implement the CCI’s directions by March 16, 2026. This includes giving users greater control over how their data is shared with Meta. Sibal also stated that WhatsApp was withdrawing its applications seeking a stay on an order from the National Company Law Appellate Tribunal (NCLAT) that upheld some of the CCI’s directives.
The core of the dispute stems from a 2021 update to WhatsApp’s Terms of Service and Privacy Policy, which raised concerns about the potential for increased data sharing within the Meta ecosystem. The CCI launched an investigation in January 2021, examining whether the policy update violated Indian competition laws, specifically concerning abuse of market dominance. WhatsApp initially challenged the investigation, but both the Delhi High Court and the Supreme Court ultimately supported the CCI’s authority to proceed.
While agreeing to comply with the CCI’s directions, WhatsApp maintains its appeal against the CCI’s broader action regarding the 2021 privacy policy remains pending before the Supreme Court. The CCI, in an order dated November 18, 2024, had imposed a five-year ban on sharing user data with Meta for advertising purposes and levied a penalty of Rs 213.14 crore (approximately $25.6 million USD as of February 24, 2026) on Meta. The NCLAT, on November 4, 2025, upheld the penalty but overturned the five-year ban.
CCI Clarification and Supreme Court Scrutiny
Following the NCLAT’s decision, the CCI sought clarification from the tribunal, which subsequently ruled that the remedial directions outlined in its November 18, 2024 order would apply to all non-WhatsApp purposes of data collection and sharing, encompassing both advertising and non-advertising activities. This clarification broadened the scope of the CCI’s directives.
The Supreme Court had previously expressed strong criticism of WhatsApp and Meta’s data-sharing practices during a hearing on February 3, 2026. The court reportedly stated that the companies were making a “mockery” of India’s “constitutionalism” and suggested they “opt out of the country” if they could not address privacy and consent concerns. This strong stance appears to have influenced WhatsApp’s decision to comply with the CCI’s directives.
The Digital Personal Data Protection Act and User Privacy
WhatsApp’s counsel, Kapil Sibal, also argued that the recently enacted Digital Personal Data Protection (DPDP) Act, 2023, comprehensively addresses privacy concerns on the platform. The DPDP Act, which came into effect in late 2023, establishes a framework for the processing of digital personal data and aims to protect individuals’ privacy rights. However, the CCI’s investigation predates the full implementation of the DPDP Act and focuses on potential anti-competitive practices.
The case highlights the growing global scrutiny of data privacy practices by large technology companies. Regulators worldwide are increasingly focused on ensuring that users have control over their personal data and that companies are not abusing their market dominance to stifle competition. The Competition Act, 2002, is the primary legislation governing competition law in India and Sections 4, 19, 26, 27, and 53B are particularly relevant to this case, according to case summaries from the National Company Law Appellate Tribunal (NCLAT).
What’s Next in the Legal Battle
While WhatsApp has agreed to implement the CCI’s directions by March 16, 2026, the core appeal against the CCI’s action on the 2021 privacy policy remains unresolved. The Supreme Court will continue to hear arguments on this matter, potentially leading to further rulings on the scope of data privacy and competition law in India. The court’s final decision could have significant implications for WhatsApp, Meta, and other technology companies operating in the country.
The ongoing legal battle underscores the complex interplay between data privacy, competition, and user rights in the digital age. As technology continues to evolve, regulators and courts will likely face increasing challenges in balancing innovation with the need to protect consumers and promote fair competition.
Readers seeking information about their data privacy rights can find resources on the website of the Digital Personal Data Protection Authority of India (once established) and through consumer protection organizations.
Here’s a developing story and will be updated as more information becomes available.
