India's Supreme Court Challenges WhatsApp's Data Sharing with Meta

• India's Chief Justice questioned how vulnerable users like elderly or rural citizens could understand WhatsApp's 'very cleverly designed' privacy policy that misleads about data-sharing intentions
• India is Meta's largest market by users, with an estimated 535.8 million WhatsApp users, making any restrictions potentially damaging to the company's business operations
• The original antitrust ruling found WhatsApp's policy forced users to accept changes or lose service access, with no opt-out feature for data sharing with Meta entities for advertising

Summary: India's Supreme Court Challenges WhatsApp's Data Sharing with Meta

India's Supreme Court warned on February 3rd that it may reimpose restrictions on WhatsApp's data sharing with Meta group entities, criticizing the messaging app's privacy policy as deliberately misleading to users.

Key Background:

WhatsApp has been engaged in a legal battle with India's antitrust regulator since November 2024, when the company was fined $25.4 million and banned from sharing user data with other Meta entities for advertising purposes for five years. An appeals court later lifted the data-sharing ban while maintaining the monetary penalty, prompting both parties to escalate the case to the Supreme Court.

Court Proceedings:

During Tuesday's hearing, Chief Justice Surya Kant sharply questioned WhatsApp's privacy policy design, stating it was "very cleverly designed to mislead users" and questioning how vulnerable populations—including elderly and rural users—could understand the company's intentions. No final verdict was issued, with hearings scheduled to continue next week.

Market Implications:

India represents Meta's largest market by user numbers, with an estimated 536 million WhatsApp users according to DataReportal. WhatsApp has previously warned that the ban could force it to roll back or pause features in India, significantly impacting its business operations.

Regulatory Context:

The Indian antitrust authority's 2024 ruling criticized WhatsApp's policy for offering users a binary choice: accept changes or lose service access, with no opt-out feature. Meta has faced similar privacy policy challenges globally, including in the European Union where it agreed in 2023 to clarify policy changes in "plain and intelligible language."

The case highlights growing regulatory scrutiny of data-sharing practices by major tech platforms in key emerging markets.