An Indian appeals tribunal on Thursday put on hold the antitrust authority’s five-year data sharing ban between WhatsApp and owner Meta Platforms’ other applications such as Facebook and Instagram for advertising purposes.
Meta is seeking to quash the Competition Commission of India’s (CCI) November directive that imposed a five-year ban on WhatsApp on sharing data with Meta entities for advertising purposes, arguing it would have a negative impact on its business in the country.
The National Company Law Appellate Tribunal (NCLAT) ordered a suspension of the ban while it hears a challenge by Meta and WhatsApp to the antitrust order.
The ban “may lead to a collapse” of WhatsApp’s business model, the appeals tribunal noted.
In its challenge to the ban, Meta told the appeals tribunal that WhatsApp may have to “roll back or pause” some features in India and curb its ability to offer users personalised ads on Facebook and Instagram.
A Meta spokesperson said it welcomed the interim ruling and “will evaluate next steps.”
The Competition Commission of India did not immediately respond to a request for comment on the ruling.
Under the order on Thursday, WhatsApp will have to provide an opt-out option to users from a 2021 privacy policy update in line with the November antitrust order.
