NCLT Postpones CCI’s Case Against WhatsApp Citing Impending DPDP Rules
NCLT Postpones CCI’s Case Against WhatsApp Citing Impending DPDP Rules
Intends to examine the overlap between the competition regulator’s jurisdiction and the forthcoming norms
The National Company Law Appellate Tribunal (NCLAT) has postponed the hearing on the Competition Commission of India’s (CCI) case against WhatsApp’s 2021 Privacy Policy due to the upcoming Digital Personal Data Protection (DPDP) Rules.
The bench will examine the overlap between the CCI’s jurisdiction and the forthcoming data protection rules.
In January 2025, the tribunal stayed the CCI order barring WhatsApp from transferring user data to Meta for five years. It imposed Rs.213 crore, noting that the ban could lead to the collapse of the business model followed by WhatsApp LLC.
Meta submitted that the remedies for privacy and data protection were without the jurisdiction and expertise of the CCI. It argued, "The Commission is not an appropriate authority to impose privacy and data protection requirements.”
CCI cited Section 4 of the Competition Act, 2002, maintaining that it was within its jurisdiction to pass appropriate orders and impose the penalty.
The CCI stated, "WhatsApp is a dominant entity, which abused its dominance. This was proved after all relevant evidence.”
Meanwhile, Dinesh Jotwani, Co-Managing Partner, Jotwani Associates, pointed out that the Ministry of Electronics and Information Technology (MEITY), Government of India, could declare the DPDP rules at any time.
