WhatsApp gets SC rap on personal data theft
New Delhi, Feb. 4 -- The Supreme Court on Tuesday came down hard on WhatsApp, saying that it will not permit the "exploitation" of personal data of even a single Indian citizen and that what the messaging platform was doing in terms of data sharing with its parent company, Meta platforms, was nothing but a "decent way of committing theft of personal information."
A bench of Chief Justice of India Surya Kant and justices Joymala Bagchi and VM Pancholi -- which was hearing a batch of appeals and cross-appeals filed by WhatsApp, Meta, and the Competition Commission of India (CCI) against the National Company Law Appellate Tribunal's November 4, 2025 order upholding a Rs.213.14 crore penalty over WhatsApp's 2021 privacy policy -- said it will not even hear the appeals unless WhatsApp gave an "undertaking" that it will not share user data.
Meta told the bench that it has already paid the penalty in full, subject to the outcome of the appeal and also informed the court that NCLAT had earlier stayed key directions of CCI relating to data sharing, prompting the present challenge.
The court however, said that it will not tolerate any dilution of user rights in the interim. "We will not allow you to share a single word of data with Meta or anyone else."
The bench added that there was "no question of breach of privacy being brushed aside" and that there was no denying the truth that WhatsApp's dominance in the messaging market left users with no real choice.
When senior counsel Mukul Rohatgi, who appeared for WhatsApp, told the court that users were given a choice to "opt out" or disallow the platform to share their personal data with meta companies, the court said that the opt out policy was highly technical and difficult for most citizens to understand and hence, consumers were effectively forced to share their personal data.
"You are making a mockery of the constitutionalism of this country. We will dismiss it right away. How can you play with the right of privacy of people like this?" the bench said. "What is the choice with the customer? You have created a complete monopoly. Where is the question of opt out? Show me in your mobile what this policy says, or, I will show you in my mobile. It is difficult for even us to understand completely. Then how do you expect a common man, a street vendor, or a person in rural Bihar or Tamil Nadu to understand. This is a decent way of committing theft of private information," it said.
The Court also rejected Meta's claim that WhatsApp is a free service, and instead observed that users "pay" with their data.
"Our data is the hidden charge for your product," the court said. Solicitor General Tushar Mehta, who was present in court and will appear for the Union ministry of electronics and Information technology from the next hearing, told the bench that personal data was not merely collected but "commercially exploited". "We are not treated as customers but as products," he said, adding that in Europe, the sharing of personal data was taxable because data has an acknowledged monetary value.
Rohatgi however, argued that WhatsApp uses end-to-end encryption and cannot read messages exchanged between users. He relied on the Digital Personal Data Protection (DPDP) Act to contend that a statutory framework now governs data use and envisages compliance timelines of 18 months.
The bench, however, pointed out that the DPDP Act is not yet in force and rejected the argument that it could justify current practices.
The court also flagged the larger concern beyond privacy, that of behavioural exploitation and monetisation.
"Every silo of data has value. We are not only concerned with privacy, but with how behaviour is tracked, analysed and used for targeted advertising," the court said.
It also questioned how targeted ads appeared moments after private interactions, such as medical consultations conducted over WhatsApp, even if messages remained encrypted.
Rejecting Meta's argument that the absence of dominance would negate the value of data, the court noted that CCI had found dominance in the messaging market and a leading role in online marketing. It said that it was apparent that WhatsApp was using user data for "targeted marketing."
The court said that WhatsApp must keep in mind that it exists to provide communication services, not to monetise user behaviour at the cost of constitutional rights.
"WhatsApp is not here to collect data and sell. You are here to provide messaging and communication services. No commercial venture can operate at the cost of the rights of people of this country," the bench said, adding that addiction to the platform could not become a justification for coercive consent models.
Recording Meta's payment of the penalty amount, the court directed that the money can not be withdrawn until further orders.
It also restrained WhatsApp from sharing any user data in the meantime. It impleaded the ministry of electronics and information technology (MeitY) as a party to the proceedings and posted the matter on February 10, to consider interim directions, making clear that any further hearing on merits would hinge on Meta's undertaking to halt data sharing entirely.
Meta Platforms and WhatsApp moved the Supreme Court challenging the NCLAT ruling that upheld a Rs.213.14 crore penalty imposed by CCI over WhatsApp's 2021 privacy policy. In November 2024, CCI had held that WhatsApp abused its dominant position under the Competition Act, 2002 by forcing users to accept a "take-it-or-leave-it" policy that expanded data sharing with Meta as a condition for continued access to the messaging service....
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