An Indian appeals court has temporarily blocked an antitrust ruling that imposed a fine on WhatsApp and prohibited the messaging service from sharing user data with other businesses and products owned by its parent company, Meta Platforms Inc. The decision provides WhatsApp with a brief reprieve in its largest market by user base, allowing the app to continue sharing data within the Meta ecosystem for now.
Last year, India’s antitrust regulator, the Competition Commission of India (CCI), levied a penalty of 2.13 billion rupees ($24.7 million) on Meta, accusing the company of abusing its dominant market position. The CCI’s ruling stemmed from WhatsApp’s 2021 privacy policy update, which the regulator argued unfairly forced users to consent to extensive data collection and its sharing within the Meta group.
On Thursday, the National Company Law Appellate Tribunal (NCLAT) suspended the fine imposed on WhatsApp, provided the company pays half of the penalty amount. However, the court did not block other aspects of the CCI’s order, which remains partially in effect.
Meta welcomed the interim decision, noting that it would evaluate its next steps. In a statement, the company emphasized its focus on finding a path that supports the millions of businesses reliant on its platform while also delivering the high-quality experiences WhatsApp users expect.
The original antitrust ruling posed a direct threat to WhatsApp’s business model by restricting the collection and sharing of certain user data for five years. The company argued that the order would significantly impact its operations. In response, the Competition Commission’s lawyers contended that WhatsApp’s privacy policy is less intrusive in Europe, where the app complies with stricter privacy regulations.
WhatsApp’s 2021 policy change has led to multiple lawsuits in India, including one that alleges a violation of the right to privacy. The company previously informed the Indian Supreme Court that it would not remove users who refused to accept the updated policy until the country’s data protection laws come into effect.
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