NCLAT admits Meta, WhatsApp pleas against CCI’s Rs 213-cr penalty

Last November, Competition Commission of India had imposed a penalty of Rs 213.14 crore on Meta for unfair business ways with respect to WhatsApp privacy policy update done in 2021

New Delhi: Appellate tribunal NCLAT on Thursday admitted the petitions filed by Meta Platforms and Whatsapp against an order passed by fair trade regulator CCI which imposed a penalty of Rs 213.14 crore for abuse of market dominance.

After hearing the initial submission from Meta and CCI on the issue, a two-member bench of the National Company Law Appellate Tribunal (NCLAT) said the issue requires consideration.

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“We find that the submission raised by the parties needs consideration. We admit both the appeals,” said the NCLAT bench which also comprised its Chairperson Justice Ashok Bhushan.

However, over the interim relief to stay the CCI order, NCLAT said it will decide next week.

During the proceedings, the counsel appearing for WhatsApp and Meta Platform requested the appellate tribunal to stay the CCI order. However, this was opposed by the counsel appearing for the Competition Commission of India.

On November 18, the Competition Commission of India (CCI) imposed a penalty of Rs 213.14 crore on social media major Meta for unfair business ways with respect to WhatsApp privacy policy update done in 2021.

Besides, the competition watchdog directed Meta to cease and desist from anti-competitive practices.

According to a CCI order, Meta and WhatsApp have also been asked to implement certain behavioural remedies within a defined timeline to address the anti-competition issues.

The regulator has called for implementing various remedial measures, including barring WhatsApp from sharing data collected on its platform with other Meta companies or Meta company products for advertising purposes for five years.

Among other directions, CCI has said that sharing of user data collected on WhatsApp with other Meta companies or Meta company products for purposes other than for providing WhatsApp services shall not be made a condition for users to access WhatsApp services in India.