India’s Supreme Court delivered a stark warning to Meta on Tuesday, asserting that the company cannot compromise the right to privacy of Indian users. The rebuke came during an appeal by Meta against a penalty imposed for WhatsApp’s 2021 privacy policy, with judges aggressively questioning how the platform monetizes user data.
The Core Dispute: Consent and Monopoly Power
The central issue is whether WhatsApp, with over 500 million users in India, can compel consent to data-sharing practices when the app functions as a practical communications monopoly. Judges repeatedly challenged Meta’s lawyers to explain how users can meaningfully agree to policies when they face limited alternatives. Chief Justice Surya Kant stated the court will not allow even “a single piece of information” to be shared while the appeal is pending.
The court’s skepticism centers on the commercial value of user metadata and its potential integration into Meta’s wider advertising and AI operations. Justice Joymalya Bagchi emphasized that even anonymized data holds economic worth, while government lawyers argued that personal data is actively exploited for profit.
WhatsApp’s Defense and Regulatory Response
Meta’s lawyers maintained that WhatsApp messages are end-to-end encrypted and inaccessible to the company, asserting the 2021 policy update did not weaken user protections. However, the court remains unconvinced, particularly given WhatsApp’s dominant position in the Indian messaging market.
The case originated from the 2021 policy change that required users to accept broader data-sharing terms with Meta or discontinue service. India’s competition regulator imposed a ₹2.13 billion penalty (approximately $23.6 million) for abusing WhatsApp’s market dominance, a ruling Meta has already paid but continues to challenge. The Supreme Court has adjourned the matter until February 9, demanding a more detailed explanation of WhatsApp’s data practices.
Broader Implications and Global Scrutiny
This case highlights growing global scrutiny over WhatsApp’s data privacy practices. Authorities in the U.S. are reportedly investigating whether WhatsApp chats are as secure as the company claims. The situation underscores a wider debate about the balance between encrypted messaging, user privacy, and the commercial interests of tech giants.
The Supreme Court’s intervention reflects a firm stance against unchecked data exploitation, signaling that user rights will not be sacrificed for profit.
The inclusion of India’s IT ministry as a party in the case widens the scope of proceedings, suggesting a comprehensive review of WhatsApp’s data handling within the country. Meta declined to comment on the ongoing proceedings.
