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.