Indian Tribunal Suspends Meta Data Sharing Ban on WhatsApp

An Indian appeals tribunal has paused a five-year data sharing ban imposed by the country's antitrust authority on WhatsApp and other Meta Platforms (formerly Facebook) applications like Facebook and Instagram.

The Competition Commission of India (CCI) had ordered the ban in November, prohibiting WhatsApp from sharing user data with Meta entities for advertising purposes. Meta had challenged the directive, arguing it would damage its business in India.

The National Company Law Appellate Tribunal (NCLAT) issued a suspension of the ban while it reviews the challenge filed by Meta and WhatsApp. The tribunal expressed concern that the ban could "lead to a collapse" of WhatsApp's business model.

Meta told the tribunal that it might have to "roll back or pause" certain features in India due to the ban's restrictions on personalized advertising.

A Meta spokesperson welcomed the interim ruling, stating that the company would "evaluate next steps."

Under the tribunal's order, WhatsApp must provide an opt-out option for users from a 2021 privacy policy update, in accordance with the CCI's previous ruling.

The CCI has not yet responded to requests for comment.