WhatsApp Backs Down: Messaging Giant To Give Indian Users More Say Over Data Sharing With Meta
· Free Press Journal
In a significant update, WhatsApp told the Supreme Court that it will implement directions issued by the Competition Commission of India (CCI) requiring the platform to give users greater control over whether their personal data is shared with other Meta companies. The messaging giant, which counts hundreds of millions of Indians among its users, withdrew an interim application that had challenged the enforcement of these user-consent safeguards.
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A bench comprising Chief Justice of India Surya Kant, Justices Joymalya Bagchi and Vipul Pancholi permitted WhatsApp and Meta to withdraw the applications after Senior Advocate Kapil Sibal, appearing for the companies, confirmed that WhatsApp would comply with the directions by March 16, reports Bar and Bench.
WhatsApp tells Supreme Court it will implement CCI order on giving users greater say in sharing their data#LegalAdvice #LawyerLife #AdvocateVaibhav #DelhiHighCourt pic.twitter.com/Z6wpSWeT6g
— Advocate Shankar Sharma (@LegalAdvVaibhav) February 23, 2026
What WhatsApp has agreed to
WhatsApp has committed to implementing the National Company Law Appellate Tribunal's (NCLAT) directions on a user-consent-based framework for data sharing - meaning users will now have a say in whether their data flows to other Meta platforms. The company has already filed an affidavit explaining its data-sharing practices and is expected to submit a compliance report before the CCI, as directed by the Supreme Court.
The policy that started it all
The main appeal, however, which concerns the validity of WhatsApp's controversial 2021 privacy policy, remains pending before the Supreme Court.
The dispute traces back to January 2021, when WhatsApp notified users of sweeping changes to its terms of service and privacy policy. Users were told they must accept the updated terms to continue using the app. Crucially, the new policy scrapped an opt-out provision from the 2016 policy that had allowed users to prevent their data from being shared with Facebook (now Meta). The 2021 update made such data sharing mandatory - a take-it-or-leave-it condition that drew swift regulatory scrutiny.
CCI's finding and the Rs. 213 crore penalty
The CCI launched an investigation and, in November 2024, found that WhatsApp's 2021 policy update amounted to an abuse of dominance under the Competition Act, 2002. It slapped a penalty of Rs. 213.14 crore on the platform and ordered WhatsApp not to share data collected on its platform with Meta or its products for five years.
WhatsApp and Meta challenged this order before the NCLAT, which in November 2025 partly sided with the companies - setting aside the CCI's finding that Meta had leveraged its dominance in OTT messaging to protect its position in online display advertising. However, the NCLAT upheld the penalty in full.
The Supreme Court has not been gentle with the platform. On a previous date of hearing, the bench strongly criticised WhatsApp and Meta for the messaging app's 'take it or leave it' approach to its privacy policy, observing that the policy appeared to enable data theft - unusually pointed language from the court in a competition matter.
While WhatsApp has stepped back on the data-sharing remedy, the broader legal battle is far from over. The CCI's own appeal before the Supreme Court remains pending - the regulator is pressing for the revival of its original five-year ban on using WhatsApp user data for advertising, a remedy that the NCLAT had struck down. The CCI argued during the hearing that the case raises competition law concerns that are distinct from privacy and data protection issues.