Key Points
WhatsApp has told the Supreme Court it will comply with the Competition Commission of India's directions requiring greater user control over data sharing with its parent company Meta.
The court allowed withdrawal of WhatsApp’s interim plea seeking a stay on the National Company Law Appellate Tribunal order, while keeping the main appeal on the 2021 privacy policy pending.
The dispute stems from CCI’s finding that WhatsApp’s 2021 “take-it-or-leave-it” privacy update abused its dominant position; a ₹213.14 crore penalty was upheld by NCLAT.
WhatsApp informed the Supreme Court on 23 February 2026 that it will comply with the Competition Commission of India’s (CCI) directions mandating greater user control over data sharing with other Meta entities, marking a significant development in the long-running dispute over its 2021 privacy policy.
A three-judge Bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and Vipul M. Pancholi was hearing a batch of appeals filed by WhatsApp and Meta, along with a cross-appeal by the CCI.
Senior advocate Kapil Sibal, appearing for WhatsApp and Meta, told the court that the company would not press its interim application seeking a stay of the National Company Law Appellate Tribunal’s (NCLAT) November 2025 ruling. He submitted that WhatsApp would implement the user-consent framework as clarified by the tribunal within the prescribed timeline and comply with the regulator’s directions by 16 March 2026.
The Bench permitted withdrawal of the interim plea and directed WhatsApp to file a compliance affidavit before the CCI, in line with the tribunal’s directions. However, the main appeal challenging the validity of the 2021 privacy policy remains pending before the court.
The case originates from WhatsApp’s January 2021 update to its terms of service and privacy policy, which required users to accept expanded data-sharing terms as a condition for continuing to use the platform. The earlier 2016 policy had allowed users to opt-out of sharing certain data with the parent company. The 2021 update made such sharing mandatory.
Following complaints, the CCI initiated an investigation. In November 2024, the regulator held that WhatsApp had abused its dominant position under the Competition Act, 2002, by imposing unfair conditions through a “take-it-or-leave-it” model. It imposed a ₹213.14 crore penalty and directed the platform not to share user data with Meta for advertising purposes for five years.
WhatsApp and Meta challenged the order before the NCLAT. In November 2025, the tribunal upheld the monetary penalty but set aside the five-year ban on advertising-related data sharing. It reasoned that a blanket prohibition could disrupt WhatsApp’s business model if meaningful user choice mechanisms were provided. Subsequently, the tribunal clarified in December 2025 that remedial directions would apply to user data sharing for all non-WhatsApp purposes, including advertising, and granted WhatsApp three months to comply.
The CCI has filed a cross-appeal before the Supreme Court seeking restoration of the five-year prohibition on advertising-related data sharing. That aspect of the dispute remains under consideration.
During an earlier hearing on 3 February 2026, the Supreme Court had expressed strong reservations about WhatsApp’s consent framework. The Bench observed that technology platforms cannot “play with the right to privacy of citizens in the name of data sharing” and indicated that not “a single piece of information” should be shared in violation of privacy norms.
In an affidavit filed before the court on 23 February 2026, WhatsApp stated that it does not read users’ private messages, sell user data, or use the contents of encrypted chats for targeted advertising. It emphasised that personal messages and calls are protected by end-to-end encryption and are inaccessible even to the company. It also stated that it does not store logs of personal messaging or calling histories and does not share message content or contact lists with Meta.
Responding to concerns that advertisements appear to reflect private conversations, the company submitted that private exchanges on WhatsApp cannot result in targeted advertisements on Facebook or other Meta platforms. It maintained that advertisements are based on activity within those platforms, information voluntarily disclosed by users, or data shared by advertisers and partners, not encrypted chat content.
At the same time, WhatsApp opposed a complete embargo on data sharing with Meta. It argued that a blanket ban would undermine user choice, impair legitimate business functions and adversely affect Indian micro, small and medium enterprises that rely on digital advertising tools. According to the company, around 200,000 Indian advertisers use Facebook and Instagram advertisements that direct customers to WhatsApp, including small retail stores and startups. It submitted that prohibiting limited, non-message data sharing could weaken tools designed to measure advertising effectiveness and prevent fraud.
The company drew a distinction between personal messaging and optional business features. It stated that limited signals may be shared when users engage with features such as “Click-to-WhatsApp” advertisements, but that message content, phone numbers and contact lists are not disclosed. Users, it argued, remain free to use WhatsApp for personal chats without engaging with such features.
The Supreme Court’s eventual decision will determine whether the user-consent framework satisfies competition law requirements and whether structural restrictions, such as a multi-year ban on advertising-related data sharing, are warranted. The matter is scheduled for further hearing in April 2026.
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