On Monday, February 23, 2026, the Supreme Court of India officially issued a notice to Meta and WhatsApp regarding a proposed five-year ban on sharing user data for advertising purposes.
This development is part of an escalating legal battle over WhatsApp’s controversial 2021 “take-it-or-leave-it” privacy policy. While a lower tribunal had previously set aside this ban, the Supreme Court is now considering reinstating it following a cross-appeal by the Competition Commission of India (CCI).
The Legal Tug-of-War
The proposed ban has moved through three levels of the Indian legal system, with each body taking a different stance on how to penalize Meta’s data practices.
| Authority | Decision / Proposal | Status |
| CCI (2024) | Imposed a ₹213.14 crore fine and a 5-year ban on sharing WhatsApp data with Meta for ads. | Initial Ruling |
| NCLAT (Nov 2025) | Upheld the ₹213 crore fine but set aside the 5-year ban, calling it “redundant” if users have an opt-out choice. | Appellate Ruling |
| Supreme Court (Feb 2026) | Issued a notice to reinstate the 5-year ban and slammed Meta’s policy as a “decent way of committing theft.” | Current Hearing |
“Theft of Private Information”: The Court’s Stance
A three-judge bench led by Chief Justice Surya Kant has been exceptionally critical of Meta’s market dominance and its treatment of Indian users.
- The “Silent Consumer”: The Chief Justice highlighted that millions of Indians are “digitally dependent” but lack the technical literacy to understand complex privacy terms. He famously asked, “A street vendor, how will she understand these terms and conditions?”
- No Real Choice: The court observed that because WhatsApp holds a near-monopoly, telling a user to “walk out or share data” is not a genuine choice but a violation of the constitutional Right to Privacy.
- Interim Restraint: During a hearing on February 3, 2026, the court warned it would not allow the sharing of “even a single word” of personal data for commercial exploitation while the case is pending.
WhatsApp’s Defense: “Small Businesses Will Suffer”
In a new affidavit filed on February 24, 2026, WhatsApp defended its data-sharing model by arguing that a blanket ban would be disproportionate.
- Economic Impact: The company claims a total ban would hurt thousands of Indian MSMEs (Micro, Small, and Medium Enterprises) that rely on digital advertising and “Click-to-WhatsApp” features to find customers.
- Encryption Myth-Busting: Senior Advocate Kapil Sibal reiterated that personal messages remain end-to-end encrypted. He argued that seeing a “hospital ad” on Facebook isn’t because WhatsApp read your chats, but likely due to search activity on other platforms.
- User Choice: WhatsApp argues that a ban actually removes choice from users who might want to share data to enhance their experience.
What Happens Next?
Despite the fight against the 5-year ban, WhatsApp has made a major concession on the Consent Framework.
- March 16, 2026 Deadline: WhatsApp has informed the Supreme Court it will implement the NCLAT’s directions by this date. This means providing users with a prominent in-app notification and tools to opt-out of data sharing for non-essential purposes.
- April 19, 2026: The Supreme Court has listed the matter for further hearing to decide on the merits of the 5-year advertising ban and the overall ₹213 crore penalty.
