On Tuesday, India’s Supreme Court issued a pointed critique of Meta, cautioning the company not to “play with the right to privacy” of Indian users, as the justices scrutinized WhatsApp’s monetization of personal data.
These remarks came as Meta sought to appeal a penalty related to WhatsApp’s 2021 privacy policy. The judges questioned how users could genuinely consent to data-sharing practices in a landscape where the application serves as the primary communication platform.
With over 500 million users, India stands as WhatsApp’s largest market and plays a crucial role in Meta’s advertising expansion. The judges probed the potential commercial value of metadata generated by the platform, examining how such data might be exploited across Meta’s broader advertising and AI functionalities.
During the proceedings, Chief Justice Surya Kant emphasized that the Supreme Court would not permit Meta and WhatsApp to share even “a single piece of information” while the appeal is under review, arguing that users have insufficient real choice in accepting WhatsApp’s privacy terms.
Characterizing the messaging service as a functional monopoly, Kant raised concerns about how “a poor woman selling fruits on the street” or a domestic worker could possibly comprehend the implications of their data usage.
Other justices also urged Meta to clarify how user data is analyzed beyond the content of messages. Justice Joymalya Bagchi stated that the court was interested in exploring the commercial value of behavioral data and its role in targeted advertising, asserting that even anonymized or siloed information holds economic significance. Government attorneys added that personal data is not only collected but also commercially exploited.
Meta’s legal representatives defended the platform by asserting that messages are end-to-end encrypted, rendering them inaccessible to the company itself. They contended that the contested privacy policy does not undermine user protections or permit the use of chat content for advertising purposes.
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This case originates from a 2021 update to WhatsApp’s privacy policy, which compelled users in India to accept broader data-sharing agreements with Meta or discontinue use of the service. Subsequently, India’s competition regulator levied a ₹2.13 billion (approximately $23.6 million) fine, determining that the policy exploited WhatsApp’s dominant position in the messaging sector. This ruling was reaffirmed on appeal, prompting Meta and WhatsApp to escalate the matter to the Supreme Court. Meta’s counsel informed the court that the penalty has already been settled.
The Supreme Court has postponed the case until February 9, allowing Meta and WhatsApp to provide a more detailed account of their data practices. Following a suggestion from the competition regulator, the court has agreed to include the IT ministry as a participant in the case, thereby expanding the scope of proceedings.
Meta has opted not to comment on the situation.
Globally, WhatsApp is under increased scrutiny regarding its data privacy practices. Reports indicate that U.S. authorities are investigating claims that WhatsApp chats might not be as private as the company claims, adding to the ongoing debate about how encrypted messaging platforms manage user data.
In India, WhatsApp is also contending with new regulatory measures, including recent SIM-binding rules designed to mitigate fraud, which could restrict the extent to which small businesses utilize the messaging service.
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