NCLAT admits Meta, WhatsApp appeals against Rs 213 crore CCI penalty

The National Company Law Appellate Tribunal (NCLAT) on Thursday admitted appeals filed by Meta Platforms and WhatsApp challenging a penalty of Rs 213.14 crore imposed by the Competition Commission of India (CCI) for alleged abuse of market dominance.

A two-member bench of the NCLAT, headed by Chairperson Justice Ashok Bhushan, said that the arguments presented by both parties warranted further examination. “We find that the submission raised by the parties needs consideration. We admit both the appeals,” the Bench noted.

The NCLAT, however, deferred its decision on granting interim relief to stay the CCI order. It announced that a decision on the matter would be made next week. During the hearing, counsel representing WhatsApp and Meta requested a stay on the CCI order, but this was opposed by the CCI’s legal team.

The CCI had imposed the Rs 213.14 crore penalty on November 18 last year, accusing Meta of engaging in anti-competitive practices linked to the privacy policy update implemented by WhatsApp in 2021. Alongside the fine, the regulator directed Meta to cease such practices and comply with specified remedial measures.

The CCI instructed Meta and WhatsApp to ensure that user data collected on WhatsApp is not shared with other Meta companies or products for advertising purposes for five years. Additionally, it prohibited making data sharing with Meta’s other entities a prerequisite for users to access WhatsApp services in India.

Meta and WhatsApp were also ordered to implement specific behavioural remedies within a defined timeline to address the identified competition concerns.