Supreme Court Threatens WhatsApp Ban Over User Data Sharing, Slams “Illusory” Consent

The Supreme Court of India delivered a severe rebuke to WhatsApp and its parent company Meta on Tuesday, cautioning that the messaging platform faces a nationwide ban if it persists in sharing users’ personal data in ways that violate privacy rights.

A bench headed by Chief Justice Surya Kant, joined by Justices Joymalya Bagchi and Vipul M Pancholi, was hearing appeals by WhatsApp and Meta challenging a National Company Law Appellate Tribunal (NCLAT) order. The NCLAT had upheld the Competition Commission of India’s (CCI) determination that WhatsApp abused its dominant market position through its data practices.

The court strongly condemned WhatsApp for exploiting and monetizing user data, describing the company’s consent mechanism as deceptive and lacking genuine choice. Chief Justice Kant likened it to an unequal pact “between the lion and the lamb,” where users must accept data sharing or abandon the service entirely in a market where WhatsApp holds near-total dominance.

“You have complete monopoly in the sector. What choice do you give users? The consent to share is like the agreement between the lion and the lamb—either give consent or walk out of WhatsApp,” the Chief Justice remarked.

The judges made it clear they would block any sharing of personal data derived from messages. “We will not allow you to share a single word of the personal data you gather from messages,” Chief Justice Kant stated firmly, demanding an affidavit from WhatsApp committing to no such sharing—failing which the appeals would be dismissed.

Representing WhatsApp and Meta, senior advocates Mukul Rohatgi and Amit Sibal contended that messages stay end-to-end encrypted, with data sharing occurring only via user consent that includes an opt-out provision. The court rejected this, questioning the reality of consent or opt-out in a monopoly context, especially for less tech-savvy users.

ALSO READ : You Can’t Play With Citizens’ Privacy In The Name Of Data Sharing : SC Warns WhatsApp, Meta

The bench expressed deep concern for ordinary citizens—such as vegetable sellers, rickshaw drivers, and rural residents—who may not grasp intricate terms and conditions often written in complex language. “How many users understand the legal obligations you impose? Where is the question of opting out when people do not understand those conditions?” Justice Kant asked.

Solicitor General Tushar Mehta, appearing for the government, argued that personal data is not just shared but commercially exploited, reducing users to commodities. The Chief Justice concurred, stressing that selling data infringes the fundamental right to privacy, rigorously safeguarded in India.

The court voiced worries about potential data transfers in future corporate changes, such as a Meta sale, and scrutinized “hidden charges” through monetized behavioral insights used for targeted ads. It insisted legitimate business must never override citizens’ rights.

The hearing has been scheduled for February 9, with the Ministry of Electronics and Information Technology instructed to submit its response.

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