India court challenges WhatsApp data-sharing policy

India’s Supreme Court has raised fresh concerns over WhatsApp’s user data-sharing practices with parent company Meta, signaling it could restore restrictions if privacy issues are not adequately addressed.

During a hearing on Tuesday, the country’s top court questioned whether WhatsApp’s privacy policy was designed in a way that could mislead users, particularly those with limited digital literacy. According to lawyers present in court, the chief justice said the policy language may be too complex for vulnerable groups, including elderly users and people from rural areas, to fully understand, News.Az reports, citing Reuters.

The case is part of a broader legal and regulatory dispute that began in November 2024, when India’s antitrust regulator fined WhatsApp $25.4 million and imposed a five-year ban on sharing user data with other Meta entities for advertising purposes. An appeals court later lifted the data-sharing restriction while maintaining the financial penalty, leading both sides to escalate the case to the Supreme Court.

The court has not issued a final ruling and is expected to continue hearings next week. WhatsApp declined to comment on the latest court remarks, citing the ongoing legal process.

India represents Meta’s largest market by user base, making the outcome of the case strategically important for the company. Industry data suggests hundreds of millions of users in India rely on Meta-owned platforms, highlighting the potential business impact of any regulatory restrictions.

WhatsApp has previously warned that strict limits on data sharing could force it to scale back or delay certain features in India. Regulators, however, argue that users were not given a meaningful choice under the disputed policy, since rejecting the updated terms could result in losing access to the service.

According to public disclosures, WhatsApp shares certain user information with Meta, including phone numbers, transaction-related data, device details and information about how users interact with businesses on the platform.

The case also reflects wider global scrutiny of Meta’s data practices. In Europe, the company previously agreed to rewrite privacy policy updates using clearer, more accessible language following regulatory pressure.

Legal experts say the Indian ruling could set an important precedent for how global tech companies structure privacy policies in large emerging markets, especially where digital literacy varies widely across populations.

If the court decides to reimpose restrictions, it could significantly affect how Meta integrates data across its platforms in India, and potentially influence regulatory approaches in other countries watching the case closely.

News.Az 

By Aysel Mammadzada