Supreme Court Criticizes WhatsApp and Meta Over Data Sharing Policy
The Supreme Court of India has expressed severe disapproval towards WhatsApp LLC and Meta Platforms regarding their data sharing policies. The court emphasized that these practices undermine the country's constitutional values and warned against exploiting citizens' private data.
Key Legal Proceedings
- The court was addressing appeals by Meta and WhatsApp challenging a National Company Law Appellate Tribunal (NCLAT) decision that upheld a penalty of Rs 213.14 crore imposed by the Competition Commission of India (CCI) due to WhatsApp's 2021 privacy policy.
- CCI also filed an appeal regarding the NCLAT order that allowed data sharing for advertising.
Court's Directions and Concerns
- Chief Justice of India (CJI) stressed that WhatsApp and Meta should cease data sharing practices or face stringent directions from the court.
- The court highlighted the monopolistic nature of WhatsApp and questioned the lack of real choice for consumers, comparing it to an agreement between a lion and a lamb.
- Solicitor General Tushar Mehta pointed out the commercial exploitation of personal data, reinforcing the court's concerns about privacy rights.
Privacy and Consumer Rights
- The court emphasized that conditions imposed by dominant market players like WhatsApp should be scrutinized from the perspective of a common consumer.
- Justice Joymalya Bagchi highlighted concerns about data exploitation for online advertising and the economic value of personal data.
Future Proceedings
- The court allowed WhatsApp and Meta to file affidavits explaining their data sharing positions.
- CCI is asked to suggest conditions to regulate data sharing, and the next hearing is scheduled for February 9 for potential interim directions.
