India’s top court has delivered one of its sharpest warnings yet to Big Tech. The Supreme Court on Tuesday questioned Meta Platforms and WhatsApp over their handling of users’ personal data, making it clear that the privacy of Indian citizens cannot be treated as a business asset. Hearing appeals against a ₹213.14 crore penalty imposed by the Competition Commission of India (CCI), the bench said it may even restrain the platforms from sharing “a single piece of information” unless firm assurances are given.
The message from the courtroom was blunt: profits cannot come at the cost of privacy.
Courtroom turns tense over data sharing
A bench led by Chief Justice of India Surya Kant, along with Justice Joymalya Bagchi and Justice Vipul Pancholi, was hearing appeals filed by Meta and WhatsApp challenging the National Company Law Appellate Tribunal’s (NCLAT) decision that upheld the CCI penalty.
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Senior advocates Mukul Rohatgi and Akhil Sibal, appearing for Meta and WhatsApp respectively, told the court the penalty amount has already been deposited. But the judges were more concerned about something bigger — how users’ personal data is collected, shared and monetised.
CJI Kant did not mince words.
“You cannot play with the right to privacy of citizens of this country,” he said, questioning how meaningful “consent” can exist when WhatsApp dominates the messaging market.
‘What choice does the user really have?’
The bench challenged WhatsApp’s claim that users have an opt-out option.
“What is the choice?” the CJI asked. “You have complete monopoly in the market and then say you’re giving a choice. Either accept the policy or walk out.”
The judges flagged the reality faced by millions of ordinary users — street vendors, domestic workers, people in small towns — who may not understand complex legal language buried in privacy policies.
“A poor woman selling fruits on the streets — will she understand these terms?” the CJI observed, calling the policy “cleverly drafted” and inaccessible.
He went further, describing the alleged misuse of data as “a decent way of committing theft of private information.”
Temporary restraint possible
The court indicated it may restrict WhatsApp and Meta from sharing any user data unless the companies file affidavits undertaking that personal information will not be exploited.
“If you can give an undertaking, we will hear you. Otherwise, we will dismiss,” the bench warned.
Meta has now agreed to submit an affidavit explaining its data practices. The matter has been posted for next week.
Bench raises bigger question: Who profits from your data?
The hearing also expanded beyond privacy to something more fundamental — the commercial value of personal data.
Solicitor General Tushar Mehta argued that data is not just collected but “commercially exploited.” Justice Bagchi echoed this concern, saying the court wants to examine how user behaviour is analysed and “rented out” for targeted advertising.
He questioned why Indian law does not recognise the economic value of data in the same way as European regulations.
“Every silo of data has a value,” he noted, adding that companies use behavioural patterns to dominate the advertising market.
The CJI even cited personal experience, saying that health-related WhatsApp messages are quickly followed by targeted medicine ads on email and YouTube.
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WhatsApp’s defence
WhatsApp maintained that messages are end-to-end encrypted and that even the company cannot read them. Its lawyers argued that data sharing happens only with consent and that similar practices operate globally.
They also pointed out that a Constitution Bench is already examining aspects of the 2021 privacy policy and that no user is barred for refusing it.
But the bench appeared unconvinced that consent is truly informed or voluntary.
How the dispute began
The case stems from a November 2024 order by the Competition Commission of India.
The regulator found that WhatsApp, being dominant in India’s messaging market, forced users into a “take-it-or-leave-it” privacy framework. Continued access to the service was linked to expanded data sharing with other Meta companies.
Calling this an abuse of dominance under the Competition Act, the CCI imposed a ₹213.14 crore penalty and directed WhatsApp to provide clearer opt-in and opt-out choices.
In 2025, the NCLAT partly relieved Meta by setting aside restrictions on advertising-related data sharing but retained the financial penalty. Both sides then moved the Supreme Court.
Why this matters for users
For India’s 500+ million WhatsApp users, the case could set a precedent on how Big Tech handles personal data.
If the court tightens rules or demands stronger safeguards, companies may have to redesign privacy policies, simplify consent mechanisms, and limit cross-platform data sharing.
More importantly, it signals that data rights are being treated as constitutional rights — not just technical fine print.
As the CJI summed it up: making money is fine, but not at the cost of citizens’ rights.
The next hearing could decide how far India is willing to go in regulating the data economy.
Disclaimer:
The information published in this article is based on court proceedings, publicly available legal documents, and statements made during the Supreme Court hearing. It is intended solely for news and informational purposes. This report does not constitute legal advice or opinion. Readers are advised to refer to official court records or consult legal professionals for specific guidance. Axpert Media strives for accuracy but does not assume liability for any decisions made based on this content.
