If you use Whatsapp, Facebook, then definitely read this order of NCLAT.

The National Company Law Appellate Tribunal (NCLAT) has today said that WhatsApp users should have the option to opt out of the data sharing policy made in the year 2021. Under this policy, the messaging platform was allowed to share data with its parent company Meta or other products.

The tribunal was hearing a plea by Meta Platform (earlier Facebook) and WhatsApp against the Competition Commission of India imposing a fine of Rs 213.14 crore on social media major Meta for unfair business practices in connection with the WhatsApp privacy policy ‘update’.

But the appellate tribunal also stayed the Competition Commission of India (CCI) order that had imposed a five-year ban on the company’s data sharing practices in the country. A bench of chairperson Justice Ashok Bhushan and technical member Arun Baroka said the five-year ban could affect the business model of WhatsApp as it is a free platform.

The order states, ‘The business model of WhatsApp LLC may be affected by the five-year ban imposed in CCI Order 247.1. It is important to note here that WhatsApp provides free services to its users.

NCLAT has also refused to stay the penalty of Rs 213.14 crore imposed by CCI and ordered Meta to deposit 50 per cent of the amount for the stay to be effective. If Meta, which has paid 25 per cent of the amount, wins the case, it will get back the amount paid. The next hearing of the case will be held on March 17.

NCLAT has upheld the CCI’s orders (247.2 and 247.3) which had said that WhatsApp has to clarify what users have shared with Meta and sharing of data beyond WhatsApp’s services is prohibited by WhatsApp in India. There can be no conditions for this.

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