An Indian tribunal has temporarily lifted a five-year data-sharing ban between WhatsApp and its parent company Meta Platforms, providing significant relief to the US-based tech giant, which had warned that its advertising business could be impacted.
Meta had contested the Competition Commission of India’s (CCI) directive issued in November, which imposed restrictions on data sharing between WhatsApp and other Meta entities for advertising purposes.
The company argued that the ban could force it to roll back some features and criticized the CCI for lacking the “technical expertise” to fully grasp the consequences of its decision.
On Thursday, India’s National Company Law Appellate Tribunal (NCLAT) ordered a suspension of the ban while it continues to review Meta’s challenge to the antitrust ruling. The tribunal expressed concerns that the ban could cause WhatsApp’s business model to collapse.
“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.
5 years long data sharing ban
An Indian tribunal has temporarily lifted a five-year data-sharing ban between WhatsApp and its parent company Meta Platforms, providing significant relief to the US-based tech giant, which had warned that its advertising business could be impacted.
Meta had contested the Competition Commission of India’s (CCI) directive issued in November, which imposed restrictions on data sharing between WhatsApp and other Meta entities for advertising purposes.
The company argued that the ban could force it to roll back some features and criticised the CCI for lacking the “technical expertise” to fully grasp the consequences of its decision.
On Thursday, India’s National Company Law Appellate Tribunal (NCLAT) ordered a suspension of the ban while it continues to review Meta’s challenge to the antitrust ruling. The tribunal expressed concerns that the ban could cause WhatsApp’s business model to collapse.
India leads as Meta’s top market
India is Meta’s largest market, with more than 350 million Facebook users and over 500 million WhatsApp users. Meta had earlier warned that if the ban remained in place, it might need to “roll back or pause” certain features, including those that enable businesses, like an Indian fashion brand, to target ads on Facebook or Instagram based on their interactions with WhatsApp users.
In the 2023-24 fiscal year, Facebook India’s registered entity, Facebook India Online Services, reported its highest-ever revenue of $351 million.
Meta welcomed the tribunal’s ruling and stated it would assess its next steps. The CCI has not yet responded to requests for comment, though it may choose to challenge the decision in the Supreme Court.
(With inputs from Reuters)
