NCLAT stays ban on WhatsApp sharing data with parent Meta
New Delhi, Jan 23 (PTI): The National Company Law Appellate Tribunal (NCLAT) on Thursday stayed a five-year ban imposed by competition watchdog CCI on data-sharing practices between WhatsApp and its parent Meta for advertising purposes, offering a breather to the tech giant.
Meta had challenged the Competition Commission of India's (CCI) directive issued in November 2024 that imposed a ban on data sharing between WhatsApp and other Meta entities for advertising purposes, warning it may have to roll back some features.
It had also slapped a Rs 213 crore penalty on Meta for abuse of its "dominant position."
The NCLAT also stayed the Rs 213.14-crore penalty, subject to deposit of 50 per cent of the penalty amount (after taking into consideration 25 per cent already deposited), within two weeks.
The tribunal observed that ban of five years that was imposed may lead to the collapse of business model which has been followed by messaging platform WhatsApp. It further noted that WhatsApp is providing its services to its users free of cost.
"We have also noticed that the Supreme Court has not granted interim order staying 2021 privacy policy and Digital Personal Data Protection Act 2023 has also been passed and is likely to be enforced which may cover all issues pertaining to data protection and data sharing. We are of the prima facie view that the ban of five years imposed...need to be stayed," it said while listing the next hearing on March 17.
The CCI had concluded that WhatsApp's 2021 privacy policy update unfairly compels users to agree to wide collection of data and its sharing within Meta group.
Meta welcomed the "NCLAT's decision to grant a partial stay on the Competition Commission of India's (CCI) order" and said it will evaluate next steps.
"While we will evaluate next steps, our focus remains on finding a path forward that supports millions of businesses that depend on our platform for growth and innovation as well as providing high-quality experiences that people expect from WhatsApp," a Meta spokesperson said.
In November, the CCI imposed a penalty of Rs 213.14 crore on social media major Meta for unfair business ways with respect to the WhatsApp privacy policy update done in 2021.
Meta Platforms and WhatsApp had challenged this order before the NCLAT, which is an appellate authority over the orders passed by the CCI.
In its 156-page order, the CCI had on November 18, 2024, directed Meta to cease and desist from anti-competitive practices.
According to that CCI order, Meta and WhatsApp have also been asked to implement certain behavioural remedies within a defined timeline to address the anti-competition issues.
The regulator called for implementing various remedial measures, including barring WhatsApp from sharing data collected on its platform with other Meta companies or Meta company products for advertising purposes for five years.
Among other directions, CCI had said that sharing of user data collected on WhatsApp with other Meta companies or Meta company products for purposes other than for providing WhatsApp services shall not be made a condition for users to access WhatsApp services in India.
Murugavel Janakiraman, CEO & Founder, Matrimony.com said that the decision of the National Company Law Appellate Tribunal (NCLAT) on Meta’s appeal against the CCI ban on WhatsApp’s data sharing policies underscores the limitations of the existing ex-post nature of the competition law and highlights the need for ex-ante regulations.
"Ex-ante rules restricting ‘data usage’ as proposed in the draft Digital Competition Bill can go a long way in preventing large digital platforms/gatekeepers from abusing their dominant position sometimes even to the disadvantage of the end-users," Janakiraman said.
As such, the ex-ante provision aims to ensure that behaviours of large digital enterprises are proactively monitored and that the CCI intervenes before instances of anti-competitive conduct transpire. In an ex-post framework, intervention happens after the occurrence of anti-competitive conduct.
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TVK chief should be given opportunity to prove majority in TN Assembly: Omar
Srinagar (PTI): Jammu and Kashmir Chief Minister Omar Abdullah on Friday said there was no justification for the Tamil Nadu governor to stop TVK leader Vijay from forming the government, and he should be provided an opportunity to prove majority in the assembly.
Tamil Nadu Governor Rajendra Vishwanath Arlekar on Thursday rejected TVK chief Vijay's claim to form the government, stating that his party lacks the requisite numbers.
The Tamilaga Vettri Kazhagam (TVK) has fallen short of meeting a simple majority to form the government in Tamil Nadu. Though the Congress with five MLAs has offered support to TVK, Vijay's party falls short of a simple majority of 118 in the 234-member Tamil Nadu Assembly.
Abdullah said there was no justification for President's rule in Tamil Nadu in view of numerous Supreme Court judgements emphasising on inviting the single largest party to form the government and then prove its majority on the floor of the house.
"If we see the Supreme Court judgement, then there should be no President's rule. There are so many cases in which the SC has clearly stated that after the elections, the single largest party should be invited (for government formation) and they should be allowed to prove their majority in the assembly," Abdullah told reporters here when asked about the political situation in Tamil Nadu.
"It happened when (former prime minister) (A B) Vajpayee formed the government for 13 days, the President of India did not wait for him to show his numbers. The President of India invited him, the government was there for 13 days, but when Vajpayee did not have the numbers, he resigned," he said.
So, if we take the SC judgement, the J-K CM added, then the Tamil Nadu Lok Bhavan "has no justification to stop this process".
"Vijay should be allowed to form the government, and then he should be provided an opportunity to prove his majority and if he proves, he will remain, but if not, then he will have to resign," Abdullah said.
To a question on whether there would be impact of the Special Intensive Revision (SIR) in Jammu and Kashmir, the CM said its impact remains to be seen in the rest of the country first as the assembly elections in the Union territory were not due till 2029.
"As of now it (SIR) has happened in Bengal only. Why are you worried about J-K? The elections are not to take place here till 2029. Let us first see its impact in the rest of the country. What we had to suffer (in J-K), we have. We suffered their delimitation, which was done to benefit the BJP and its friends. Let's see what happens in the future," he said.
On the reported remarks of Leader of Opposition in the J-K assembly, Sunil Sharma, that if the chief minister goes for cabinet expansion, then his party, the National Conference (NC), would suffer like the Shiv Sena in Maharashtra and someone like Eknath Shinde would emerge here as well, Abdullah said all his MLAs stand firmly with the party.
"This tells about the intentions of the BJP. 'Aaya Ram Gaya Ram' (turncoats). Eknath Shinde left because the BJP helped him to leave. It is obvious that the LoP is impatient to hold the chair of the chief minister of J-K. I will only tell him that there is no Eknath Shinde in the National Conference. NC's MLAs stand firmly with the party," he said.
Abdullah said the cabinet expansion is on hold because statehood has not been restored to J-K.
"Cabinet expansion is not on hold because of any fear and that is why I regularly say that the LoP proves through statements like this that till the BJP does not get power, they will not allow us to work smoothly and will not make J-K a state again," he said.
Hitting out at the LoP and the BJP, the J-K CM said the people of J-K, especially those who voted for the BJP in the last elections, should remember that the LoP and his party "indulge in the politics of blackmail and the people here are intimidated in the name of statehood".
