Will comply with NCLAT direction on user consent over data sharing: Meta, WhatsApp to SC

New Delhi [India], February 23 (ANI): Meta and WhatsApp on Monday informed the Supreme Court that they would comply, by March 16, with the directions issued by the NCLAT, which mandate safeguards on user consent for data sharing, even as their appeal against the NCLAT ruling remains pending.
On December 15 last year, the appellate tribunal had clarified that its safeguards requiring express and revocable user consent would apply to all non-WhatsApp purposes, including both advertising and non-advertising data sharing and granted three months to the companies to implement the directions.
After the counsel representing the appellants (Meta and WhatsApp) informed the Court that they would comply with the directions over which they had sought stay, a bench led by the Chief Justice of India (CJI) Surya Kant disposed of the stay applications as "not pressed for", while clarifying that all issues in the main appeals would remain open. The apex court also directed the appellants to file a compliance affidavit after March 16, 2026.
"These applications essentially seek directions NCLAT (December 15) to the extent that it directs Meta to comply with certain directions to Meta. Since the appellants have decided to comply with the NCLAT directions, they will do the needful by March 16. Appellants (WhatsApp and Meta) shall file a compliance affidavit after March 16", the Court noted.
During the hearing, Senior Advocate Kapil Sibal, appearing for the big-tech platforms, submitted that earlier, the Court was under the impression that the companies had been indulging in data-sharing practices, which is not the case. Sibal stated that the appellants would comply with the NCLAT's directions.
"This court had an impression of sharing data - that's not the case. We are complying with the NCLAT's directions. We have challenged it on appeal, but in the interim, we are complying", Sibal said.
In response, the Court asked, "Without prejudice to your appeal, you are saying you will comply with those directions?" Sibal responded affirmatively.
Noting the submission, the Court granted permission to the appellants to withdraw their pleas.
The proceedings arise from a November 2025 judgment of the NCLAT, which upheld a ₹213.14 crore penalty imposed by the Competition Commission of India (CCI) over WhatsApp's 2021 privacy policy. The tribunal held that WhatsApp's policy imposed unfair conditions on users and that cross-platform data sharing strengthened Meta's dominance in the online display advertising market. While upholding the penalty, the NCLAT set aside the CCI's direction imposing a five-year ban on sharing WhatsApp user data for advertising purposes. It reasoned that a blanket prohibition was not justified if users were given meaningful opt-in and opt-out choices.
The CCI has filed a cross-appeal before the Supreme Court challenging the removal of the proposed five-year advertising ban. The top court has also issued notice to Meta in connection with that aspect. All appeals remain pending. The Court will hear the matter in April.
Earlier, the Court had sharply criticised the companies' data-sharing practices, describing them as a "decent way of committing theft." (ANI)