A three-judge Bench of the Supreme Court of India, headed by Chief Justice (CJI) Surya Kant, sent a strong message to instant messaging platform WhatsApp and its parent company Meta Platforms during hearings on their data-sharing practices on Tuesday.
At one point, the CJI compared the sharing of personal information to “a decent way of committing theft,” adding, “By now you must have taken away millions of bytes of data.”
The Bench also made its position unambiguous: “We will not allow you to share a single word of people’s personal data… You have to give an undertaking or we will impose very strict conditions.”
How the controversy began
The dispute traces back to WhatsApp’s 2021 privacy policy update, which informed users that data could be shared with other Meta-owned companies for purposes such as operating and improving services.
Users were left with a stark choice -- accept the updated policy or stop using WhatsApp. There was no practical way to remain on the platform while refusing data sharing.
The Competition Commission of India (CCI) later said that this “take-it-or-leave-it” approach amounted to abuse of market dominance and imposed a penalty of Rs 213.14 crore.
What judges questioned in court
Justice Joymalya Bagchi described the consent taken from users as “manufactured,” pointing out that every piece of data -- private or otherwise -- carries value.
He observed, “The DPDP Act only addresses privacy. We would like to examine the rent-sharing of data. Behavioural trends and tendencies can be utilised and monetised.”
CJI Kant questioned the idea of genuine consent: “What is the choice for consumers? They are told to either walk out of WhatsApp or share their data… Where is the question of ‘opt out’? In actuality, there is no such option.”
He also asked whether ordinary users could realistically understand the policy: “Will the domestic help at your houses understand this policy? You cannot take advantage of these millions of silent consumers who have no voice.”
What WhatsApp and Meta argued
Senior advocates representing the companies maintained that users could opt out of data sharing, that prior consent was central, and that personal messages remain end-to-end encrypted.
One argument was that the service is free and users do not pay money for it.
The Bench appeared unconvinced. When counsel suggested users could opt out, the CJI responded, “What ‘opt out’? Then you opt out of the country.”
Case background and current status
Meta and WhatsApp have challenged an order of the National Company Law Appellate Tribunal (NCLAT), which upheld the Rs 213.14 crore penalty while setting aside a five-year bar on data sharing.
The Supreme Court has now asked both companies to file an affidavit giving a clear assurance that they will not share user data. The matter has been listed for interim directions on February 9.
The Bench warned that failure to give such an undertaking could result in dismissal of their appeals.
What the law says
India’s Digital Personal Data Protection (DPDP) Act, 2023 primarily focuses on privacy protection. Judges indicated that while privacy is covered, questions remain about commercial exploitation and value extraction from user data.
The court also noted that some foreign jurisdictions impose heavy damages or even taxes on data sharing, and that India may need deeper scrutiny of digital platforms.
What WhatsApp may have to do
Will WhatsApp have to leave India?
An exit appears unlikely. India is WhatsApp’s largest market, and the court’s remarks are best seen as pressure to enforce compliance rather than an eviction order.
The broader message is that any company operating in India must respect constitutional values, especially the right to privacy.
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