NCLAT Orders WhatsApp to Seek User Consent for Data Sharing Beyond App
December 16, 2025
On Monday, India’s appellate tribunal NCLAT clarified its earlier order on WhatsApp’s privacy and consent rules. The tribunal said WhatsApp cannot claim unlimited rights over user data. "Users must retain the right to decide what data is collected, for which purposes and for how long. Any non-essential collection or cross-use like advertising etc. can occur only with the concerned users' express and revocable consent," the two-member bench including Chairperson Justice Ashok Bhushan stated. The tribunal explained that users have to be allowed to opt in or opt out of data sharing at any time. This covers both regular and optional app features. Giving this choice protects users’ rights permanently and removes the risk of exploitation, a problem seen in WhatsApp’s 2021 privacy policy. The NCLAT also said its original order from November 18, 2024, applies to all WhatsApp user data collection and sharing for non-WhatsApp purposes, including advertising. WhatsApp was given three months to make required changes. Earlier, the tribunal had partially lifted a ban on data sharing between WhatsApp and Meta for advertising. However, it kept a ₹213 crore penalty against Meta, confirming WhatsApp’s policy breach for abusing market dominance. NCLAT noted that sharing user data between WhatsApp and Meta gave Meta an unfair edge in digital advertising, blocking rivals. Despite this, the tribunal rejected parts of CCI’s findings on abuse of dominance across markets, as WhatsApp and Meta are separate legal entities. The case began after the Competition Commission of India fined Meta ₹213.14 crore for WhatsApp’s 2021 privacy policy update. Meta and WhatsApp challenged the penalty and ban, but NCLAT’s 2025 ruling now strengthens user privacy controls by requiring clear consent for data use beyond WhatsApp.
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Nclat
Whatsapp
Meta
User Data
Privacy
Data sharing
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