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The Supreme Court on Tuesday pulled up Meta Platforms and WhatsApp as it began hearing their appeals against the competition watchdog's penalty and directions, issued over WhatsApp’s 2021 privacy policy.
A Bench led by Chief Justice Surya Kant is hearing challenges to the National Company Law Appellate Tribunal (NCLAT) order, which upheld the Competition Commission of India’s (CCI) penalty of Rs 213 crore on WhatsApp and Meta for abuse of dominant position in relation to the 2021 policy.
The companies have also contested the tribunal’s direction that WhatsApp provide users with a clear choice about whether they want their data shared with Meta Platforms Inc. or other Meta group companies for advertising and related purposes.
During the hearing, Solicitor General Tushar Mehta told the court that personal data on the platform is not only sold but also commercially exploited. During the hearing, the Chief Justice made it clear that the court would not tolerate any compromise with user privacy. “You can’t play with the right of privacy of this country, in the name of data sharing,” CJI Surya Kant told WhatsApp and Meta, cautioning them against sharing users’ personal data with anyone.
The CJI further observed: “Where is the question of opt out? Show me in your mobile and I will show your mobile. This is a decent way of committing theft of private information.” He underscored WhatsApp’s market dominance, saying, “You know your commercial interest and you also know how you have made consumers addicted to the app. Everybody uses it... Consumer has no choice, you have created monopoly.”
On the business practices of the platforms, Justice Kant said, “You are making a mockery of the constitutionalism of this country. We will dismiss it right away. How can you play with the right of privacy of people like this? People pay you for this. Consumer has no choice, you have created a monopoly.”
Senior counsel Mukul Rohatgi, appearing for Meta and WhatsApp, submitted that a related matter is pending before a Constitution Bench and that the service is free of charge, no consumer is asked to pay. Senior counsel Arun Kathpalia clarified that not all data is shared, only specific data.
The Bench has asked WhatsApp and Meta to file an affidavit giving a categorical undertaking that they will not share user data. The court indicated that if such an affidavit is not filed, their appeals against the NCLAT order are liable to be dismissed.
A Bench led by Chief Justice Surya Kant is hearing challenges to the National Company Law Appellate Tribunal (NCLAT) order, which upheld the Competition Commission of India’s (CCI) penalty of Rs 213 crore on WhatsApp and Meta for abuse of dominant position in relation to the 2021 policy.
The companies have also contested the tribunal’s direction that WhatsApp provide users with a clear choice about whether they want their data shared with Meta Platforms Inc. or other Meta group companies for advertising and related purposes.
During the hearing, Solicitor General Tushar Mehta told the court that personal data on the platform is not only sold but also commercially exploited. During the hearing, the Chief Justice made it clear that the court would not tolerate any compromise with user privacy. “You can’t play with the right of privacy of this country, in the name of data sharing,” CJI Surya Kant told WhatsApp and Meta, cautioning them against sharing users’ personal data with anyone.
The CJI further observed: “Where is the question of opt out? Show me in your mobile and I will show your mobile. This is a decent way of committing theft of private information.” He underscored WhatsApp’s market dominance, saying, “You know your commercial interest and you also know how you have made consumers addicted to the app. Everybody uses it... Consumer has no choice, you have created monopoly.”
On the business practices of the platforms, Justice Kant said, “You are making a mockery of the constitutionalism of this country. We will dismiss it right away. How can you play with the right of privacy of people like this? People pay you for this. Consumer has no choice, you have created a monopoly.”
Senior counsel Mukul Rohatgi, appearing for Meta and WhatsApp, submitted that a related matter is pending before a Constitution Bench and that the service is free of charge, no consumer is asked to pay. Senior counsel Arun Kathpalia clarified that not all data is shared, only specific data.
The Bench has asked WhatsApp and Meta to file an affidavit giving a categorical undertaking that they will not share user data. The court indicated that if such an affidavit is not filed, their appeals against the NCLAT order are liable to be dismissed.