Supreme Court to Meta: Follow Constitution or Exit India, No Data Sharing

The Supreme Court of India has taken a stringent stance against Meta and its messaging platform WhatsApp regarding data privacy and user rights violations, while during a significant hearing on Friday, a bench led by Justice Surya Kant issued a stern warning to the tech giants, stating that if they can't respect the provisions of the Indian Constitution and the privacy of its citizens, they should reconsider their operations in the country. The court has directed the companies to file a formal affidavit explicitly stating that they won't share user data under any circumstances.

Mandatory Affidavit on Data Sharing Policies

During the proceedings, the court demanded a clear and binding affidavit from WhatsApp and Meta regarding their data-sharing practices, while justice Surya Kant emphasized that user privacy is paramount and no compromise will be tolerated. The bench clarified that if the companies fail to provide a written assurance that they won't share data, their current petition will be dismissed without further delay. This directive comes amid growing concerns that digital platforms often conceal data-sharing practices behind complex policy terms.

Complexity of Privacy Policies and Citizen Rights

The court raised serious questions about the language and structure of WhatsApp's current privacy policy. The bench remarked that the policies of these companies are so misleading and complex that it's nearly impossible for an average Indian citizen to comprehend them. Justice Surya Kant noted that a street vendor or an elderly woman speaking only regional languages can't be expected to navigate the web of technical and legal jargon. The court asserted that 'informed consent' is only meaningful if the user truly understands what is being done with their data.

CCI Penalty and the Monetary Value of Data

The case originates from a ₹213 crore penalty imposed on Meta by the Competition Commission of India (CCI). The CCI had penalized the company for abusing its dominant market position through WhatsApp's 2021 privacy policy update. The National Company Law Appellate Tribunal (NCLAT) upheld this penalty, which Meta subsequently challenged in the Supreme Court, while during the hearing, Solicitor General Tushar Mehta argued that personal data carries a specific monetary value, which companies exploit for targeted advertising and monetization.

Legal Analysis and Data Protection Framework

According to legal analysts, the Supreme Court's observations signal a significant shift toward digital sovereignty and the rigorous implementation of the Digital Personal Data Protection (DPDP) Act. Justice Bagchi also raised questions regarding the economic value of data and its jurisprudential aspects. The court has made it clear that no commercial enterprise will be allowed to profit at the expense of the fundamental rights of citizens. The outcome of this case now hinges on whether Meta and WhatsApp submit the affidavit as per the court's requirements.

Conclusion and Future Implications

The Supreme Court has granted the companies time until the next hearing to clarify their position. If Meta and WhatsApp fail to provide the non-sharing affidavit, they may face the full weight of the ₹213 crore penalty and be forced to implement major changes to their operational policies. This order sets a precedent for all Big Tech companies operating in India, reinforcing that they must function within the boundaries of Indian law and constitutional mandates.