India’s Supreme Court on Tuesday warned it could reimpose a ban on WhatsApp data sharing with other Meta-owned entities, saying the messaging platform’s privacy policy appeared designed to mislead users, according to two lawyers present during the hearing.
The remarks come amid an ongoing legal battle between WhatsApp and India’s antitrust authorities over how user data is shared within Meta’s ecosystem, in one of the company’s most important global markets.
Court Questions Clarity of Privacy Policy
During the hearing, Chief Justice Surya Kant sharply criticised WhatsApp’s privacy policy, describing it as “very cleverly designed to mislead users,” the lawyers said. He questioned how ordinary users — particularly elderly people or those in rural areas — could reasonably be expected to understand the implications of agreeing to the policy.
The court’s comments focused on whether WhatsApp adequately explained how user data could be shared across Meta’s platforms, and whether users were given a genuine choice. The Supreme Court did not issue a final ruling on Tuesday and said it would continue hearing the case next week.
WhatsApp declined to comment on the court’s observations, stating that the matter was currently under judicial consideration.
Background to the Antitrust Dispute
The case stems from a November 2024 ruling by India’s antitrust regulator, which fined WhatsApp $25.4 million and barred it from sharing user data with other Meta entities for advertising purposes for five years. The watchdog said WhatsApp’s updated privacy policy forced users to accept broader data-sharing terms or risk losing access to the service, without offering an opt-out.
An appellate tribunal later lifted the data-sharing ban while keeping the financial penalty intact. That decision prompted both WhatsApp and the regulator to approach the Supreme Court, leading to the current proceedings.
WhatsApp has previously warned that restrictions on WhatsApp data sharing could force it to roll back or pause certain features in India, potentially affecting its business operations.
Broader Regulatory Pressure on Meta
India is Meta’s largest market by user numbers, although the company does not disclose country-specific data. According to estimates from research firm DataReportal, Facebook has about 403 million users in India, while Instagram has around 481 million.
Concerns over Meta’s privacy practices are not limited to India. In 2023, the company agreed to clarify changes to its privacy policy in plain and intelligible language after European regulators accused it of breaching EU law by failing to adequately inform users.
WhatsApp has publicly stated that it shares limited categories of information with Meta, including phone numbers, transaction data, interactions with businesses, and mobile device information. Critics argue that the scope and consequences of such sharing are not clearly communicated to users.
The Supreme Court’s warning signals that India’s judiciary may take a tougher stance on digital privacy, with potentially far-reaching implications for how global technology firms operate in the country.
