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Supreme Court Warns WhatsApp and Meta on User Data Privacy

Written by: Team Angel OneUpdated on: 4 Feb 2026, 4:20 pm IST
Supreme Court issues warning to WhatsApp and Meta, rejecting “take it or leave it” data sharing and stressing privacy rights.
Supreme Court Warns WhatsApp and Meta on User Data Privacy
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The Supreme Court on February 3, 2026, delivered a stern warning to WhatsApp and its parent company Meta Platforms, stating that citizens’ right to privacy cannot be compromised for commercial gain. 

Court’s Warning to WhatsApp and Meta 

A three‑judge bench led by Chief Justice Surya Kant said the court would issue detailed orders on February 10.  

The bench declared that any sharing of user data for targeted advertising would be barred unless robust safeguards are in place. The Chief Justice emphasized that “we cannot allow citizens’ privacy to be compromised for business interest of a MNC.” 

Appeals and Penalty Background 

The warning came while hearing appeals filed by Meta and WhatsApp against a National Company Law Appellate Tribunal order that upheld a ₹213 crore penalty imposed by the Competition Commission of India for abuse of dominance in the OTT messaging market.  

The bench noted that the penalty has been fully deposited and will remain locked until further directions. 

Issues with Consent and Opt‑Out Mechanisms 

The court questioned the validity of the “take it or leave it” consent model, asking whether users truly have a choice if exiting the platform still leads to data sharing.  

Justice J Bagchi highlighted that most users do not read newspaper notices and may not understand in‑app messages about opt‑out options. The bench stressed that vulnerable users in remote areas are “silent consumers” unaware of such mechanisms. 

Read More: Meta Signs $6 Billion Fibre Optic Cables Deal with Corning for AI Data Centres! 

Potential Orders and Industry Impact 

The bench indicated that it could prohibit any data sharing that lacks clear user consent. It also signalled that the court would examine the monetary value of the data and how user behaviour is monetised.  

The ruling is expected to set a precedent for data‑privacy standards across digital platforms operating in India. 

Conclusion 

The Supreme Court’s warning underscores the judiciary’s commitment to protecting privacy rights against commercial exploitation. Detailed orders slated for February 10 will clarify the permissible scope of data sharing for WhatsApp, Meta and similar services. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Feb 4, 2026, 10:50 AM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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