WhatsApp–Meta Data Sharing Case: Supreme Court Signals Tough Stand

The Supreme Court has raised serious concerns over WhatsApp’s data-sharing practices with Meta entities, warning that it may reimpose restrictions if user privacy is found to be compromised. The case comes amid an ongoing legal battle between WhatsApp and India’s antitrust regulator over data protection and consent.

Supreme Court Questions WhatsApp Policy of Sharing User Data With Meta Entities

The Supreme Court on Tuesday issued a strong warning to Meta-owned WhatsApp, indicating it could reimpose a ban on data sharing with other Meta group entities. The court observed that WhatsApp’s privacy policy appeared to mislead users, according to two lawyers present during the hearing.

The remarks come amid a prolonged legal dispute between WhatsApp and India’s competition regulator over how user data is collected, processed, and shared for advertising purposes.

WhatsApp’s Legal Battle With India’s Antitrust Authority

WhatsApp has been locked in a regulatory dispute since November 2024, when India’s antitrust authority fined the company $25.4 million (Rs. 213 crore). Along with the penalty, the regulator barred WhatsApp from sharing user data with other Meta entities for advertising purposes for five years.

An appeals court later lifted the restriction on data sharing while allowing the monetary penalty to stand. This partial relief led both WhatsApp and the regulator to approach the Supreme Court, bringing the matter before India’s highest judicial authority.

Chief Justice Flags WhatsApp Privacy Policy Design

During Tuesday’s hearing, the Chief Justice questioned the clarity and intent of WhatsApp’s privacy policy, expressing concern about how it affects vulnerable users.

According to the lawyers present in court, the Chief Justice said the policy was “very cleverly designed to mislead users.”

"Your privacy policy is designed in such a way that how can a poor elderly woman ... or (someone who) comes from a rural area understand your intentions?" Chief Justice Surya Kant said, as cited by the lawyers.

The court’s observations suggest heightened scrutiny of whether users truly understand what they consent to when accepting WhatsApp’s policy updates.

WhatsApp Declines Comment, Case Remains Sub Judice

WhatsApp declined to comment on the Supreme Court’s remarks, stating that the matter is sub judice. The court did not issue a final ruling during the hearing and confirmed that proceedings will continue next week.

Earlier, WhatsApp had warned that restrictions on data sharing could force the company to roll back or pause certain features in India, potentially impacting its business operations in the country.

India: Meta’s Largest User Market

India is Meta’s biggest market globally by user numbers, although the company does not release country-specific data.

According to estimates by research firm DataReportal:

• Facebook has around 403 million users in India

• Instagram has approximately 481 million users in the country

WhatsApp’s massive Indian user base makes the outcome of the case particularly significant for Meta’s global data strategy.

Global Scrutiny of Meta’s Privacy Policies

Meta’s data-sharing policies have faced regulatory scrutiny beyond India. In 2023, the company agreed to clarify changes to its privacy policy in plain and intelligible language after being accused of violating European Union law.

The Indian antitrust authority’s 2024 ruling stated that WhatsApp’s policy effectively forced users to either accept the new terms or risk losing access to the service, with no opt-out option provided.

What Data WhatsApp Shares With Meta

WhatsApp has publicly stated that it shares the following information with Meta:

• User phone numbers

• Transaction data

• Interactions with businesses

• Mobile device information

The ongoing legal challenge centres on whether such data sharing violates competition law and user consent principles.

What Lies Ahead

With the Supreme Court signalling discomfort over WhatsApp’s privacy framework, the possibility of renewed restrictions on data sharing remains open. The verdict could set a major precedent for digital privacy, consent, and competition law in India’s fast-growing internet economy.