In a landmark clarification on data privacy and competition law, the National Company Law Appellate Tribunal (NCLAT) has ruled that WhatsApp must obtain explicit user consent before sharing personal data with its parent company Meta for advertising purposes — and indeed for all non-WhatsApp uses of that data. This means consent cannot be assumed or bundled; users must opt in and retain the ability to revoke consent at any time.
The issue was examined as part of a broader dispute involving the Competition Commission of India (CCI) and an earlier NCLAT ruling on WhatsApp’s controversial 2021 privacy policy — which compelled users to agree to wide data sharing or lose access to service. mint
📌 What the NCLAT Decision Says
🧠 Consent Is Not Optional
The tribunal made it clear that user consent is mandatory for all data WhatsApp collects and shares with Meta entities, whether used for advertising or other purposes. This applies to data shared outside the core WhatsApp messaging service, including integrations with Facebook, Instagram, and Meta’s wider advertising ecosystem.
In its order, the NCLAT stated that WhatsApp and Meta cannot claim unilateral or open-ended rights over user data, and that any non-essential data sharing – including for advertising – requires the user’s express and revocable consent
📊 Restoring User Choice
Under the ruling:
- WhatsApp must provide users with clear disclosure about what data is shared
- It must explain the purpose of each category of data use
- Users must be able to opt in or opt out at any stage
- Consent must be revocable at any time — not just at the point of account creation
This is seen as correcting ambiguity from a November 4 NCLAT judgment, which had overturned a five-year ban on advertising-related data sharing but left questions about whether consent protections applied equally to advertising use. The latest clarification resolves that doubt.
The tribunal has given WhatsApp three months to implement these changes and comply with the clarified directions.
🧠 Why This Matters
🔐 Greater User Privacy Protections
The ruling reinforces user autonomy over personal data in an era where digital platforms increasingly monetise that data through targeted advertising. Users now must explicitly agree to such data sharing — a significant shift from take-it-or-leave-it models that have dominated privacy policies.
📈 Impact on Digital Advertising
For Meta and advertisers who use data from WhatsApp for ad targeting and attribution, this decision raises the bar for how user data can be legally and ethically leveraged. Platforms will now need robust consent frameworks and transparent disclosures to continue similar practices in India. Storyboard18
📜 Competition and Compliance
The NCLAT’s emphasis on consent as a core principle aligns competition law scrutiny with data privacy norms — a trend regulators worldwide are also following. This could influence future regulatory actions concerning user data, platform power, and competitive dynamics in tech ecosystems.
