The Supreme Court of India delivered a powerful rebuke to global technology giant Meta Platforms and its widely-used messaging service WhatsApp on Tuesday, firmly stating that the companies cannot be permitted to share user data for advertising purposes under WhatsApp's controversial 2021 privacy policy. A bench presided over by Chief Justice of India Justice Surya Kant, alongside Justice Joymalya Bagchi, made it unequivocally clear to Meta that any ongoing sharing of WhatsApp user data for advertising would face severe consequences.
Court Issues Ultimatum to Meta
The apex court directed Meta to submit an affidavit providing a clear and binding undertaking that it will cease sharing WhatsApp user data for advertising purposes. The bench warned that failure to comply with this directive could result in the dismissal of Meta's case. "We will not allow you to share a single word of user data. These things must be very clear. If you are ready to give an affidavit—an undertaking from your management—that is fine. Otherwise, we will dismiss it. There is no question of sharing data," the bench emphatically observed during the proceedings.
Criticism of Policy Language and User Choice
In a significant development, the Supreme Court also strongly criticized the manner in which Meta structured its opt-in and opt-out choices for users, describing the policy language as incomprehensible to ordinary individuals. The bench highlighted the practical challenges faced by common citizens, stating, "The language of your policy is such that an ordinary user cannot understand it. What kind of option are you giving? Imagine a street vendor—a poor woman sitting on the street selling fruits. How will she understand your terms and conditions about opting in or opting out?" The court added that the policy appeared to be "very cleverly crafted," raising concerns about transparency and informed consent.
Timeline and Next Steps
The Supreme Court granted Meta a one-week deadline to file the required affidavit and announced that it would hear the matter again next week before issuing further orders. This timeline underscores the urgency with which the court is addressing the privacy concerns surrounding WhatsApp's data practices.
Background of the Lengthy Legal Dispute
This warning marks a critical juncture in the protracted legal battle over WhatsApp's 2021 privacy policy, which has now reached the Supreme Court after being scrutinized by the Competition Commission of India (CCI) and the National Company Law Appellate Tribunal (NCLAT). The Supreme Court is currently hearing petitions filed by Meta Platforms and WhatsApp challenging the substantial ₹213.14-crore penalty imposed by the CCI. The CCI had determined that WhatsApp abused its dominant position in the messaging market by compelling users to accept its 2021 privacy policy on a "take-it-or-leave-it" basis, which required users to consent to expanded data sharing with Meta companies to continue using the platform.
Meta has also contested the NCLAT's ruling from 4 November, which largely upheld the CCI's findings and the penalty but set aside a key restriction. Concurrently, the CCI has approached the Supreme Court to challenge the NCLAT's decision to remove a five-year ban on WhatsApp sharing user data with Meta companies for advertising purposes. While the NCLAT acknowledged that WhatsApp's 2021 policy relied on coerced consent and undermined user choice, it later clarified that WhatsApp must obtain explicit user consent before sharing data with Meta companies for both advertising and non-advertising purposes, and cannot claim indefinite rights over user data.
Historical Context and Implications
The dispute traces back to November 2024, when the CCI levied the ₹213.14-crore fine on Meta and WhatsApp. Following interim relief from the NCLAT in January 2025, the case has now ascended to the Supreme Court, which is poised to definitively rule on the extent to which WhatsApp can share user data under its 2021 privacy policy. This landmark case holds significant implications for digital privacy, corporate accountability, and the regulatory landscape in India, potentially setting a precedent for how technology companies handle user data in the future.
