Meta Approaches NCLAT Against CCI Verdict Banning WhatsApp From Sharing Data For Advertising

Meta Approaches NCLAT Against CCI Verdict Banning WhatsApp From Sharing Data For Advertising

The 2,000-page appeal voiced concerns about the limitations of personalized ads on Facebook and Instagram

Meta has shown concern that a recent antitrust directive from the Competition Commission of India (CCI) could impact WhatsApp's commercial viability in India.

The ruling had banned WhatsApp from sharing user data with Meta for advertising purposes. It may force the company to roll back or pause some features in the country.

The parent company of Facebook has approached the National Company Law Appellate Tribunal (NCLAT) to overturn the Commission’s decision, which also imposed a $24.5 million fine.

The CCI observed that the social media giant abused its dominance and coerced users into accepting a 2021 privacy policy. It expanded data collection and sharing in one of the biggest markets of the company with more than 350 million Facebook and 500 million WhatsApp users.

The company stated, "Under its widest interpretation, implementing the remedy will likely require Meta to roll back or pause several features and products. It impacts Meta's and WhatsApp's ability to remain commercially viable.”

Defending its policy change publicly, it disagreed with the CCI order.

Meta's 2,000-page appeal adopted a critical stance on the regulator’s operations. It voiced concern that the ban on sharing WhatsApp user data with Meta would limit its ability to provide personalized ads on Facebook and Instagram.

Meanwhile, WhatsApp acknowledged sharing specific user data with Meta, such as phone numbers, transaction details, business interaction and device information.

While explaining the potential consequences of the ruling, Meta stated that the ban could prevent Indian businesses from tailoring ads on Facebook or Instagram based on their interactions with WhatsApp users, such as discussions about a particular clothing line.

The NCLAT is likely to hear Meta's plea soon, though the matter could extend over weeks or months.

In the interim, the tribunal has the authority to temporarily suspend the CCI’s directive.

Facebook India Online Services, which sells advertising inventory in India, reported a revenue of $351 million in 2023-24, marking its highest in five years.