NCLAT suspends CCI’s data sharing ban on Meta, WhatsApp

In a significant development, the National Company Law Appellate Tribunal (NCLAT) on

Thursday put on hold the Competition Commission of India’s (CCI) five-year ban prohibiting data sharing between WhatsApp and its parent company, Meta Platforms, including applications like Facebook and Instagram for advertising purposes.

Meta and WhatsApp have been contesting the CCI’s November directive, which restricted WhatsApp from sharing user data with other Meta entities for targeted advertising. Meta argued that the ban could negatively impact its business operations in India, one of its largest markets globally.

The CCI had imposed the ban citing concerns about user privacy and potential anticompetitive practices, stating that the integration of data could harm competition in the digital advertising ecosystem.

The NCLAT’s order suspends the CCI directive, allowing data sharing to continue temporarily while the tribunal hears the appeal filed by Meta and WhatsApp. The tribunal’s decision marks a crucial moment for Meta, as it avoids immediate disruption to its data-driven advertising model in India.

Indiarepresents a key market for Meta, with WhatsApp boasting over 500 million users in the country.

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“This initiative will empower subscribers to pay online and subscribe to the channels they want to watch and get it activated on their TV sets in real-time without any delay. Without needing to undertake any software development, LMOs can approach Mobiezy for their pre-built and pre-integrated solution that uses NXTDigital’s news APIs and can be up and running with their own mobile apps within just a few days.”

RU Ediriwira, Group CTO, NXTDigital Limited

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N.K. Rouse, COO, NXT Digital Ltd

“One of the key principles of the Hinduja Group is ‘Partnership for Growth’. After 2.0 saw the launch of HITS to connect LMOs in even the most remote locations through the only satellite-based cable TV platform in India; 3.0 focuses not just on strengthening the overall ecosystem we have built, but harnessing the convergence of technologies – to be delivered through a national network of NXTHUBs. Video and broadband are only the beginning of the digital highway of services that we have developed for roll-out backed by a robust suite of innovative apps developed by service providers exclusively for our LMOs and subscribers.”

Vynsley Fernandes, MD & CEO, NXTDigital Limited

“Wireline broadband is becoming ever more important not only in connecting homes across the country but also small to large enterprises-to the digital economy. The NXTHUBs will be the perfect point-of-presence to offer broadband services to cater to these consumer needs.”

Yugal Kishore Sharma CEO, ONEOTT Intertainment Limited

Amazing and grim battle for survival. Guess it will end up in Supreme Court. All that NCLT asked Zee to do was to file a reply to Invesco petition for a EGM. Now this is getting too serious. So far Invesco has been hammered for demanding an EGM. What is Zee upto? Ofcourse my lawyer community knows better!

Ashok Mansukhani, Corporate Law and Media Law Advocate at Ashokmansukhani Associates

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