India’s Supreme Court has issued a notice to Meta over a proposal to impose a five-year ban on the advertising use of data from its messaging platform WhatsApp. The court was hearing appeals filed by WhatsApp and Meta challenging a ruling by the National Company Law Appellate Tribunal, which upheld a ₹213.14 crore (~ $25 million) penalty imposed by the Competition Commission of India in November 2024.
The development follows findings by the antitrust regulator that WhatsApp’s 2021 privacy policy update allowed expanded data sharing with Meta companies in a manner that could strengthen Meta’s advertising dominance while limiting user choice. The CCI concluded that the policy imposed unfair conditions by requiring users to accept expanded data-sharing terms in order to continue using the service, and it also proposed a five-year restriction on Meta Platforms and WhatsApp sharing user data for advertising purposes.
The case represents one of the most significant regulatory challenges faced by the Mark Zuckerberg-led firm in India, where WhatsApp has more than 500 million users and functions as critical digital infrastructure for communication, commerce, governance messaging, and small business outreach. Authorities argue that the integration of WhatsApp data with Meta’s wider ecosystem, including Facebook and Instagram advertising systems, could strengthen market dominance in digital advertising. Regulators are particularly concerned that messaging metadata, device identifiers, and behavioural signals could be used to refine ad targeting even if message content remains end-to-end encrypted.
Earlier, the CCI’s investigation found that the ‘take-it-or-leave-it’ nature of the policy undermined meaningful consent and created barriers for users unwilling to share data but dependent on the platform for daily communication and business operations.
Meanwhile, the social media giant has maintained that WhatsApp messages are protected by end-to-end encryption and that advertising systems do not access message content, while arguing that data sharing supports service improvements, security features, business messaging tools, and personalised experiences across platforms. However, regulators contend that network effects and data aggregation across Meta’s services give the company an advantage that competitors cannot replicate, raising concerns under competition law.
In November 2025, the NCLAT upheld the monetary penalty but modified some operational restrictions, prompting appeals from both Meta and regulatory authorities, leading the Supreme Court to examine the broader constitutional and competition implications. Now, the apex court of the country has listed the matter for further consideration on April 19.
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