Facebook parent Meta has said that the WhatsApp user data is its private property and is unwilling to share it with its rivals. In a hearing at the National Company Law Appellate Tribunal over a Rs 213.14 crore fine imposed on the company by the Competition Commission of India, Meta has defended its decision to share its proprietary user data with its rivals.
The case, which is based on WhatsApp’s controversial 2021 privacy policy, alleges Meta abused its dominant market position
"By leveraging user data from WhatsApp, Meta can enhance its technology. It's (user data) collected by me, it's my personal property. Shall I give it to my competitors?" senior advocate Arun Kathpalia, representing Meta, told the tribunal.
Meta and WhatsApp also challenged the CCI's order, which not only imposed the penalty but also directed a five-year ban on the company's data-sharing practices in India.
The NCLAT, however, stayed the ban, observing in a January order that such a restriction could collapse WhatsApp's business model since the service is free for users.
Senior advocate Kapil Sibal, appearing for WhatsApp, argued that the CCI had overstepped its jurisdiction. "That's not their jurisdiction. Entire approach of CCI is legally erroneous and outside the purview of Section 4 of the Competition Act," Sibal reportedly said. He added that no evidence or surveys were presented to establish consumer harm.
The tribunal, while offering partial relief, refused to stay the penalty.
Meta has been directed to deposit 50% of the fine within two weeks to secure a stay, having already paid 25%. If it prevails in the case, the amount will be refunded.
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