India's antitrust regulation has temporarily suspended WhatsApp and Meta's five year ban on sharing data. Under the ban, however, the two companies could not share user data for advertising reasons. A decision from the tribunal allows WhatsApp and Meta to continue sharing data under the ban until it is reviewed in a legal challenge.

Highlights

• Indian tribunal suspends data-sharing ban on WhatsApp and Meta.
• Ban imposed by Competition Commission of India (CCI) in November 2024.
• CCI ordered restricted data sharing for advertising purposes.
• Meta challenged the CCI order, arguing it would harm its business model.
• Tribunal ruled that the ban could disrupt WhatsApp's business model in India.

In November 2024, the Competition Commission of India (CCI) banned data sharing by WhatsApp and Meta due to fears the user data could be misused. In doing so, the CCI order prohibited WhatsApp from sharing the user data with other Meta affiliates like Facebook and Instagram for targeting advertising purposes.

The CCI, however, rejected the challenge from Meta, saying that the order only pertains to WhatsApp's specific business model, which it can't change without harming its functionality. Meta also took a swipe at the CCI for not having 'technical expertise' to understand the ramifications of the order issued by it.

With its arguments, Meta has convinced the National Company Law Appellate Tribunal (NCLAT) that enforcement of the ban should be put on hold, while something continues to be heard on Meta's challenge to the antitrust verdict. A ban could "lead to a collapse" of WhatsApp's business model in India, the tribunal noted.