Meta contests Indian data-sharing rules in court

Meta is in a legal fight with the Indian government over WhatsApp's data-sharing policies. The case is set for an important hearing on May 13 in front of the National Company Law Appellate Tribunal (NCLAT). This decision could influence digital privacy laws and competition rules in India. The Competition Commission of India (CCI) ruled against Meta in November 2024. They banned WhatsApp from sharing user data with Facebook and Instagram for ads and imposed a fine of ₹213 crore for unfair practices. In January, NCLAT lifted a five-year ban on Meta but required the company to pay half the fine. Meta argues that stopping data-sharing harms businesses that use WhatsApp for targeted advertising. They believe the upcoming Digital Personal Data Protection Rules, expected in mid-2025, will make the CCI's involvement unnecessary. If the tribunal agrees, it could pause the case until the new rules are in place. On the other hand, the CCI wants the case to proceed now. They claim that WhatsApp's updated privacy policy in 2021 forced users into sharing data without an option to opt out, which goes against competition rules. The CCI also argues that data-sharing should not be mandatory for using the app. The outcome of the hearing in May will determine whether the case moves forward now or waits for the new rules. This will have major implications for digital privacy and competition laws in India.