Daijiworld Media Network - New Delhi
New Delhi, Feb 3: The Supreme Court on Tuesday issued a strong warning to instant messaging platform WhatsApp and its parent company Meta over their data-sharing and privacy practices, asserting that user data cannot be exploited for commercial purposes and that the court will not permit even a single piece of personal information to be shared.
A bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice Vipul Pancholi was hearing appeals filed by Meta Platforms and WhatsApp LLC against a National Company Law Appellate Tribunal (NCLAT) order that upheld a Rs 213.14 crore penalty imposed by the Competition Commission of India (CCI) over WhatsApp’s 2021 privacy policy.
During the hearing, Chief Justice Surya Kant cautioned the US-based firm, stating, “You can’t play with the privacy of our country. We will not allow you to share a single digit of our data.” He added that WhatsApp’s dominant position leaves users with little real choice and observed that the company had created a monopoly, thereby undermining the constitutional right to privacy.
The court also took up a cross-appeal filed by the CCI challenging the NCLAT decision that allowed Meta and WhatsApp to share user data for advertising purposes despite finding no abuse of dominance.
Senior advocates Mukul Rohatgi and Akhil Sibal, appearing for Meta and WhatsApp respectively, informed the court that the penalty amount had already been deposited. While agreeing to admit the appeals, the Chief Justice made it clear that the court would not proceed further unless WhatsApp and Meta gave an undertaking that users’ personal data would not be used.
When Akhil Sibal argued that users had the option to opt out of the policy, the Chief Justice questioned the validity of such consent, asking whether a street vendor or domestic worker would genuinely understand the policy. He remarked that collecting data from millions in this manner amounted to a “decent way of committing theft of private information.”
Rohatgi submitted that a Constitution Bench was already examining WhatsApp’s privacy policy and that an undertaking had been given there assuring that no user would be barred for not accepting the 2021 policy. He also referred to the Digital Personal Data Protection Act, 2023, which provides time for compliance until May 2027. However, Justice Bagchi noted that the Act is yet to come into force.
Solicitor General Tushar Mehta, appearing for the Centre, argued that personal data was not only being sold but also commercially exploited. Justice Bagchi observed that the court would examine how WhatsApp “rents out” data and monetises users’ behavioural patterns for targeted advertising, noting that every segment of data carries commercial value.
Chief Justice Surya Kant echoed these concerns, citing personal experience of receiving targeted advertisements shortly after sharing health-related messages on WhatsApp. In response, Rohatgi and Sibal maintained that WhatsApp messages are end-to-end encrypted and inaccessible even to the platform.
Senior advocate Samar Bansal, appearing for the CCI, said the penalty was imposed after examining these very issues, arguing that in an advertising-driven business model, users effectively become the product.
Following sustained questioning, Rohatgi informed the court that Meta would file an affidavit explaining its data practices. The court accepted the proposal, adjourned the matter to next Monday, allowed Meta and WhatsApp to file affidavits, and impleaded the Ministry of Electronics and Information Technology as a party to the case.