NEW DELHI: The Supreme Court on Tuesday issued stern warning to WhatsApp and its parent company Meta Platforms against sharing users’ private data for targeted advertising, warning that citizens’ right to privacy could not be compromised for the business interests of a multinational corporation. A three-judge bench led by Chief Justice Surya Kant said it would pass detailed orders on the issue on February 10. “We cannot allow citizens’ privacy to be compromised for business interest of a MNC,” the Chief Justice said, as the court indicated it could ban such data sharing if safeguards were not ensured.
The observations came while the court was hearing appeals filed by Meta and WhatsApp against a National Company Law Appellate Tribunal order that upheld a Rs 213 crore penalty imposed by the Competition Commission of India for abuse of dominance in the OTT messaging market. Making its position clear, the bench said user data could not be shared under the guise of consent or opt-out mechanisms. “We will not allow you to share even a single information, you cannot play with the rights of this country,” the Chief Justice said, adding, “you cannot violate the right of privacy of citizens.
”Senior advocate Mukul Rohatgi, appearing for Meta and WhatsApp, told the court that three appeals were before it, two by Meta and WhatsApp and one by the CCI. Counsel also informed the bench that the penalty amount had been deposited in full, subject to the outcome of the appeals, and that the CCI had not challenged the January 25 order.
The court directed that the appeals be listed for final hearing before a three-judge bench, with counters to be filed within four weeks. It also ordered that the penalty deposited by Meta should not be withdrawn until further directions. Questioning the nature of consent claimed by WhatsApp, the Chief Justice said, “what is the choice? the choice is that even if you walk out of the Whatsapp facility we will share your data?” He added, “either you give an undertaking… we will not allow you to share a single word of the data.
”The bench remained unconvinced by arguments that users had an opt-out option. “The right to privacy so zealously guarded in this country, and the kind of language you use, so cleverly crafted, even the street vendor will not understand,” the Chief Justice said. “Where is the question of opt-out? people do not understand that complication.
”Calling the data-sharing framework unacceptable, the Chief Justice remarked, “this is decent way of committing theft of the private information, we will not allow you to do that. ”Justice J Bagchi also raised concerns over whether users were meaningfully informed.
“Who reads newspaper ads?” he asked, pointing out that platforms frequently send in-app messages but rely on newspaper notices when it comes to opt-out choices. He said the court would examine the value of the data being shared and how user behaviour was being monetised. The Solicitor General told the court that the choice offered to users was effectively “take it or leave it.
” The bench also flagged concerns about vulnerable users, with the Chief Justice referring to people in remote areas and describing many as “silent consumers” who are “completely unaware of the system. ”Reiterating the broader principle, the Chief Justice said, “any commercial venture cannot be at the costs of the rights of the people of this country. ”(With inputs from Live Law).