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India Supreme Court Accuses WhatsApp of Data Theft, Threatens Ban

by Lisa Park - Tech Editor

New Delhi, India – – India’s Supreme Court has leveled serious accusations against WhatsApp, alleging the platform “robs private information” and threatening a potential ban to prevent further data sharing with its parent company, Meta. The escalating legal battle centers on WhatsApp’s privacy policy and its implications for user data security and privacy rights.

The strong rebuke came during a hearing on , as reported by Live Law, a specialized Indian legal news outlet. Justice Surya Kant, presiding over the court, stated, This represents a subtle form of stealing private information. The court is currently reviewing appeals from both Meta and WhatsApp, challenging a previous ruling by an appellate tribunal.

The initial ruling, delivered last year, imposed a fine of 2.13 billion rupees (approximately $25.4 million USD) on WhatsApp for its privacy policy. The core of the dispute revolves around WhatsApp’s 2021 policy update, which requires users to agree to share data with Meta in order to continue using the service. This policy has raised concerns about the extent to which user data is being leveraged for commercial purposes, particularly targeted advertising.

Adding another layer to the complexity, the Competition Commission of India (CCI) has also filed an appeal. While the appellate tribunal upheld the monetary fine, it had previously lifted a restriction on data sharing between Meta and WhatsApp. The CCI is challenging this aspect of the ruling, arguing that the data sharing practices constitute an abuse of dominant position. The CCI found that WhatsApp’s policy did not provide a genuine opt-out for users, effectively forcing acceptance of data sharing to maintain access to the platform.

The Supreme Court’s questioning focused on the perceived lack of genuine choice for WhatsApp users. Justice Kant pointedly asked, What is the option? (…) Either you accept the WhatsApp policy or we share the data. He further criticized the language used in WhatsApp’s terms of service, describing it as so ingeniously drafted that This proves incomprehensible to the common citizen, like a poor woman selling fruit on the street or domestic staff. This highlights the court’s concern that the terms are not easily understood by the average user, potentially leading to uninformed consent.

The CCI’s 2024 ruling specifically noted that WhatsApp’s policy presented users with an ultimatum: accept the changes or lose access to the service, without offering a meaningful voluntary opt-out mechanism. This finding underscores the regulatory scrutiny surrounding WhatsApp’s data practices and the perceived imbalance of power between the platform and its users.

This isn’t the first time WhatsApp has faced such restrictions in India. In November 2024, the CCI initially imposed a five-year ban on WhatsApp sharing user data with Meta and related applications. While the appellate tribunal temporarily lifted the data-sharing restriction, the monetary penalty remained in place, prompting the current appeals to the Supreme Court. The court has indicated it will continue to hear the case in the coming weeks, but has not yet issued a final verdict.

The case highlights a growing global trend of increased regulatory scrutiny over the data practices of large technology companies. Concerns about privacy, data security, and the potential for misuse of personal information are driving stricter regulations and legal challenges worldwide. India’s assertive stance against WhatsApp reflects a broader effort to protect the privacy rights of its citizens and ensure that technology companies operate within a clear and accountable legal framework.

The outcome of this case could have significant implications for WhatsApp’s operations in India, one of its largest markets. A potential ban on data sharing with Meta could disrupt the company’s advertising revenue streams and force it to fundamentally alter its privacy policy. More broadly, the case could set a precedent for other countries considering similar regulations to protect user data and limit the power of dominant technology platforms.

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