WhatsApp denies data sharing with Meta in Supreme Court hearing amid privacy row

WhatsApp has assured the Supreme Court that it does not exchange user data with its parent company, Meta, as it is alleged. The company claimed it has been establishing its systems to have high privacy features. This is connected to complaints about its privacy policy in 2021, and a fine by competition regulators.

What WhatsApp Said in the Hearing

In the hearing, the WhatsApp legal team indicated that it is wrong to assert that customer information is shared freely with other Meta platforms. The company defended itself by saying it encrypts private messages using its technology, which includes end-to-end encryption. It further indicated no infringement of Indian law.

WhatsApp cited the Digital Personal Data Protection Act, 2023, which claimed that the legislation already covers the privacy issues. The company claims that the information of the users is processed according to the law and the privacy is a priority.

Background of WhatsApp CCI Penalty and NCLAT Order

The case commenced when Competition Commission of India fined WhatsApp Rs 213.14 crore. The regulator discovered that the privacy policy of the company published in 2021 obliged a user to agree to the data sharing conditions to proceed with the service. It characterized the policy as a take it or leave it policy and stated that it was an abuse of market dominance.

WhatsApp appealed the order to the National Company Law Appellate Tribunal. The tribunal affirmed the penalty, but emphasized that user choice should be safeguarded. It advised that the users ought to make a clear choice on the nature of the data to be gathered, its use, and duration. It further added that any data collection that is not necessary should involve express and revocable consent.

How WhastApp Maintains Privacy Safeguards

WhatsApp has informed the court that it would adhere to the NCLAT directives by the month of March 16, 2026. The company indicated that the users will have a straightforward choice concerning data sharing with Meta. It also submitted an affidavit on the way of its encryption technology.

The Supreme Court had also expressed grave concerns on the issue of privacy in previous hearings. The Bench indicated that it would not permit any violation of rights of millions of users. It further asked the question of whether the commercial exploitation of personal data is detrimental to the interests of the consumers.

Data Concerns and Competition Law

The Competition Commission claimed that it is not just a matter of privacy. It stated that data sharing also influences the market competition and consumer protection. The regulator argues that control in digital markets should be subjected to more intense examination.

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The case has now posed bigger concerns regarding the consent of users, control of data, and healthy competition in the Indian digital economy.