WhatsApp to Comply With Data Sharing Directions, Main Case Still Before SC

On February 23, 2026, WhatsApp informed the Supreme Court that it would comply with the directions issued by the Competition Commission of India (CCI) concerning user choice and transparency in sharing data with its parent company, Meta Platforms Inc.[1]

Background: CCI’s Findings

The CCI had earlier recorded a prima facie finding that WhatsApp contravened Section 4 of the Competition Act, 2002, by engaging in “exploitative and exclusionary conduct” through its 2021 privacy policy update. Following a detailed investigation, the CCI, by order dated November 18, 2024, held that Meta had abused its dominant position in contravention of:

• Section 4(2)(a)(i): By imposing unfair conditions through WhatsApp’s 2021 “take-it-or-leave-it” policy, which compelled users to accept expanded data collection terms and intra-group data sharing without an opt-out;
• Section 4(2)(c): By sharing WhatsApp users’ data between Meta companies for purposes other than providing WhatsApp services, thereby creating entry barriers and resulting in denial of market access in the display advertisement market; and

• Section 4(2)(e): By leveraging its dominant position in the OTT messaging apps through smartphones to protect its position in the online display advertising market.

The CCI directed Meta and WhatsApp to cease the anti-competitive conduct and further ordered that:

• WhatsApp’s policy must include a detailed explanation of the user data shared with other Meta companies or Meta company products, along with the purposes of such sharing;
• Access to the WhatsApp service in India shall not be made conditional upon users consenting to the sharing of their WhatsApp data with other Meta companies or Meta company products for purposes other than providing WhatsApp services;
• Users must be provided with an opt-out from data sharing for non-WhatsApp purposes, along with a revocable consent mechanism; and
• WhatsApp shall not share user data collected on its platform with other Meta companies or Meta company products for advertising purposes for a period of five years.

A penalty of ₹213.14 crore was also imposed on Meta.

NCLAT’s Partial Relief and Clarification

On appeal, the National Company Law Appellate Tribunal (NCLAT), by order dated November 4, 2025, set aside the finding under Section 4(2)(e) and the five-year ban, while upholding the remaining directions.

Subsequently, on December 15, 2025, the NCLAT clarified that the directions relating to user optionality and data transparency apply to data sharing for all non-WhatsApp purposes, including advertising. WhatsApp was granted three months to implement the required changes.

Case Before the Supreme Court

Meta and WhatsApp have challenged the penalty before the Supreme Court, while the CCI has sought restoration of the five-year ban. Earlier this month, the Court directed that the penalty amount deposited by Meta shall not be withdrawn pending further orders.

On February 23, 2026, the companies withdrew their stay applications and undertook to comply with the NCLAT directions by March 16, 2026. The main appeals remain pending.

[1] Meta Platforms, Inc. v. Competition Commission of India & Ors., Civil Appeal Nos. 301-302 of 2026 (along with connected matters).