5. Supreme Court on Meta, WhatsApp and Data Consent

Background The Supreme Court of India examined the validity of user consent on dominant digital platforms while hearing matters arising from WhatsApp’s 2021 privacy policy update. Key Issues Raised by the Court • Whether consent is truly free when users face no real alternative due to market dominance. • Recognition of data as an economic asset, not merely a privacy concern. • Scrutiny of Meta for alleged abuse of dominant position, already penalised by the Competition Commission of India (CCI). Analytical Value Addition • Network effects in digital markets limit meaningful choice, undermining the idea of “informed consent”. • Judicial scrutiny expands the debate from privacy (rightsbased) to data ownership and economic justice. • The DPDP Act, 2023, while addressing consent and protection, does not provide a rent-sharing or data value compensation framework. Constitutional & Legal Framework • Article 21: Right to privacy (Puttaswamy judgment). • Competition Act, 2002: Prevention of abuse of dominance. Key Definition • Network Effect: The phenomenon where a service becomes more valuable as more users join it. Conclusion India’s digital governance framework must evolve to protect citizens as both rights-holders and economic stakeholders in the data economy. UPSC Relevance: GS Paper II & III – Digital rights, competition law, governance