On Tuesday, the Supreme Court issued a stern warning to Meta Platforms regarding WhatsApp's privacy policy. A bench headed by Chief Justice Surya Kant stated that technology companies cannot operate in India and disregard citizens' right to privacy. The court even went so far as to say that if companies cannot abide by the Constitution, they should leave the country.
Hearing Underway on Privacy Policy
The court was hearing an appeal filed by Meta and WhatsApp challenging a decision of the National Company Law Appellate Tribunal (NCLAT). This decision upheld the Competition Commission of India's (CCI) penalty of ₹213.14 crore imposed on WhatsApp for its 2021 privacy policy.
The CCI has also filed a separate appeal challenging the NCLAT order that allowed the sharing of user data for advertising purposes.
Interim Order on February 9
Considering the seriousness of the matter, the Supreme Court directed the Ministry of Electronics and Information Technology (MeitY) to be made a party to the petition. The court warned the companies that they must either provide a written assurance that they will not share data, or the court will have to pass an order. The bench stated that an interim order in this case will be passed on February 9.
Court Raises Several Important Questions
During the hearing, the Supreme Court observed that due to WhatsApp's market dominance, users have limited options. The court questioned whether ordinary people can understand the company's complex privacy policy. The court stated that user consent is only valid if it is clear and understandable.
Solicitor General Tushar Mehta, representing the government, stated that user data is not only being collected but also being used commercially. The court also inquired about how WhatsApp uses user data for targeted advertising.
The Chief Justice, citing his own experience, mentioned that after sending health-related messages, advertisements related to those messages started appearing, raising questions about data usage. 'Theft in the name of data sharing will not be tolerated.'
During the hearing, the Chief Justice raised serious questions about the language of WhatsApp's privacy policy. He said that the right to privacy is very important in this country, and companies cannot violate it.
The Chief Justice made a strong statement, saying, "You cannot play with the privacy of this country under the pretext of data sharing. Your privacy terms are so cleverly drafted that an ordinary person cannot understand them. This is a 'sophisticated way' of stealing private information, which we will not allow."
The Chief Justice further added, "If you cannot abide by our Constitution, then leave India. We will not allow any compromise with the privacy of our citizens."
Meta and WhatsApp's arguments
Senior advocates Mukul Rohatgi and Akhil Sibal, representing the companies, stated that WhatsApp messages are protected by end-to-end encryption and the company cannot read them. They also informed the court that the penalty amount had already been deposited.
Meta has agreed to file an affidavit to clarify aspects related to data usage. The court accepted this proposal and adjourned the hearing until next week, also making the Ministry of Electronics and Information Technology a party to the case.
What is the whole dispute?
This dispute stems from the Competition Commission of India's (CCI) November 2024 decision, which stated that WhatsApp's 2021 privacy policy amounted to an abuse of its dominant position in the Indian messaging market. The CCI alleged that WhatsApp forced users to share data with Meta and its other entities under a "take it or leave it" model, without providing any meaningful opt-out option.
The regulatory body found that access to WhatsApp's messaging service was unlawfully linked to consent for data sharing, which violates the Competition Act, 2002. Consequently, the CCI imposed a fine of ₹213.14 crore on Meta and directed it to restore user choice through clear opt-in and opt-out options and greater transparency.
Meta and WhatsApp challenged this order in the NCLAT. In November 2025, the NCLAT lifted the five-year ban on data sharing related to advertising and overturned the findings regarding Meta's alleged illegal gains in its advertising ecosystem, but upheld the ₹213.14 crore fine.
The court has made it clear that it will not allow Meta and WhatsApp to share even a single piece of data. All eyes are now on February 9th, when the court will deliver its interim judgment in this case.
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