NCLAT orders suspension of CCI's ban on WhatsApp meta data sharing

Delhi Delhi. An Indian appeals tribunal on Thursday blocked a five-year data-sharing ban imposed by the antitrust authority for advertising purposes between WhatsApp and its owner Meta Platform's other applications such as Facebook and Instagram.

Meta is seeking to quash the Competition Commission of India's (CCI) November directive that had imposed a five-year ban on WhatsApp on sharing data with Meta entities for advertising purposes, arguing that it would lead to a crackdown in the country. Its business will be negatively impacted. The National Company Law Appellate Tribunal (NCLAT) ordered suspension of the ban while it hears the challenge to the antitrust order by Meta and WhatsApp.

The appeals tribunal said the ban “could lead to the collapse” of WhatsApp's business model. Challenging the ban, Meta told the appeals tribunal it may have to “withdraw or stop” some features in India because of antitrust The order blocks its ability to deliver personalized ads to users on Facebook and Instagram.

A Meta spokesperson said it welcomed the interim decision and would “evaluate next steps.” The Competition Commission of India did not immediately respond to a request for comment on the decision. According to the order issued on Thursday, WhatsApp will have to provide an opt-out option to users from the 2021 privacy policy update, in line with the November antitrust order.

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