“Follow Indian law or exit”: Supreme Court warns WhatsApp and Meta over data use

The Supreme Court on Tuesday delivered a strict directive to WhatsApp and its parent company Meta, warning that user data in India cannot be commercially exploited. The court said that if the company cannot follow Indian laws and constitutional requirements, it should rethink doing business in the country. Also Read: Oakley Meta Vanguard with Meta AI launched in India: Check features, price, availability

These observations were made during a hearing linked to WhatsApp’s 2021 privacy policy and the penalty imposed by the Competition Commission of India. Also Read: How to make text stylish on WhatsApp

What the Supreme Court Said

A bench led by Chief Justice of India Surya Kant expressed serious concern over WhatsApp’s data-sharing practices. The Chief Justice said the court would not allow even “a single digit” of user data to be shared, adding that companies cannot play with the right to privacy of Indian citizens.

The bench questioned how genuine user consent can be in WhatsApp’s case, given how widely the app is used and the absence of real alternatives. The Chief Justice noted that most users do not have a meaningful choice and are effectively forced to accept the policy to continue using the service.

At one point, the court remarked that if Meta cannot follow India’s constitutional framework, it should “leave India.”

Concerns Over User Consent and Data Use

The court also raised concerns about whether ordinary users are even able to understand WhatsApp’s privacy policy. The Chief Justice questioned whether a street vendor, a domestic worker, or someone from a rural area would actually understand what they were agreeing to, and said the way consent is taken cannot be considered fair.

The court also noted the government’s arguments, with Solicitor General Tushar Mehta stating that user data was being used for commercial purposes and not just stored. Justice Joymalya Bagchi added that behavioural data has clear commercial value and deserves closer examination.

The Chief Justice further referred to his own experience, saying he had noticed targeted advertisements appearing shortly after health-related conversations on WhatsApp, which raised concerns about how user behaviour is tracked.

WhatsApp and Meta’s Response

Senior advocates Mukul Rohatgi and Akhil Sibal, appearing for Meta and WhatsApp, argued that WhatsApp messages are end-to-end encrypted and cannot be accessed by the platform. They also told the court that the Rs 213 crore penalty imposed by the CCI had already been deposited.

Meta’s legal team said the company would file an affidavit explaining its data practices. The court accepted this and adjourned the matter, while also adding the Ministry of Electronics and Information Technology (MeitY) as a party to the case.

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Background of the Case

The case stems from the CCI’s November 2024 order, which found that WhatsApp abused its dominant position by forcing users to accept expanded data sharing under a “take-it-or-leave-it” model. While the NCLAT later lifted a ban on data sharing for advertising, it upheld the penalty. The Supreme Court will continue hearing the matter next week.