India Tribunal Lifts WhatsApp Data-Sharing Ban but Upholds Meta’s $25 Million Fine

/in /tarafından

An Indian appeals tribunal has overturned a five-year ban preventing WhatsApp from sharing user data with other Meta-owned entities but upheld a $25.4 million fine, delivering a mixed verdict for the U.S. tech giant.

The National Company Law Appellate Tribunal (NCLAT) ruled on Tuesday that the Competition Commission of India’s (CCI) 2024 order lacked sufficient justification for restricting data sharing, calling the regulator’s rationale “missing altogether.” However, it agreed with the CCI’s finding that Meta had abused its market dominance by imposing unfair terms on users.

WhatsApp had challenged the CCI’s ban, warning it could have been forced to roll back certain features if the restriction remained. Meta, in turn, argued that the watchdog lacked the technical expertise to assess the implications of its decision.

The dispute dates back to 2021, when changes to WhatsApp’s privacy policy sparked widespread backlash in India. Regulators accused the company of pressuring users to accept new data-sharing terms or risk losing access to the platform.

A Meta spokesperson said the company is reviewing the tribunal’s written order and reiterated that the 2021 privacy update “did not change the privacy of people’s personal messages, which remain end-to-end encrypted.”

India is Meta’s largest market globally, with hundreds of millions of users across WhatsApp, Facebook, and Instagram — making the ruling a critical development for the company’s operations in the country.

Uber Shares Drop 8% as Legal Costs Undercut Profit and Holiday Outlook Disappoints

/in /tarafından

Uber’s shares fell 8% on Tuesday after the company reported weaker-than-expected operating profit and issued a cautious outlook for the upcoming holiday quarter. The setback overshadowed otherwise strong growth in both its rides and delivery businesses, which continue to benefit from rising demand and its Uber One membership program.

The ride-hailing giant posted an operating income of $1.11 billion for the third quarter, below analyst expectations of $1.61 billion, according to Visible Alpha. Uber attributed the shortfall to legal and regulatory expenses but did not disclose details. Its guidance for adjusted profit in the fourth quarter — between $2.41 billion and $2.51 billion — also fell short of Wall Street’s projections.

Despite the profit miss, revenue rose 20% year-over-year to $13.47 billion, surpassing analyst estimates of $13.28 billion. Gross bookings climbed to $49.74 billion, beating expectations, driven by a 29% jump in delivery sales and a 20% rise in mobility revenue.

CEO Dara Khosrowshahi said the Uber One program continues to boost customer engagement, noting that users who use both rides and delivery services spend three times more than single-service customers. However, only about 20% of users currently utilize both, leaving significant room for growth.

The earnings disappointment comes despite Uber’s strong year-to-date performance, with its stock up more than 60% before Tuesday’s drop. Investors, however, remain focused on whether the company can sustain profitability while managing mounting legal challenges and regulatory scrutiny.

Norway’s $2.1 Trillion Wealth Fund to Vote Against Elon Musk’s $1 Trillion Tesla Pay Deal

/in /tarafından

Norway’s sovereign wealth fund, the world’s largest, announced Tuesday that it will vote against Tesla CEO Elon Musk’s proposed $1 trillion compensation package — potentially the largest CEO pay deal in corporate history. The vote will take place at Tesla’s annual general meeting on November 6.

Tesla’s board is urging shareholders to approve the plan, warning that rejecting it could prompt Musk to leave the $1.5 trillion automaker. The proposal, however, has drawn criticism from investors and proxy advisory firms who say the package is excessive and could give Musk disproportionate control.

The Norwegian fund, officially known as Norges Bank Investment Management (NBIM), said while it recognizes the “significant value created” under Musk’s leadership, it is concerned about the award’s overall size, potential shareholder dilution, and Tesla’s heavy reliance on Musk’s role. NBIM also confirmed it would vote against Tesla’s general employee compensation plan and two of three board members up for re-election, including Kathleen Wilson-Thompson and Ira Ehrenpreis.

Musk’s proposed deal would grant him stock awards worth up to $1 trillion over 10 years, though Reuters estimates the actual value after cost deductions could total around $878 billion. The package would only fully vest if Tesla’s market value climbs to $8.5 trillion — roughly six times its current valuation.

Despite opposition from major investors, the pay deal is expected to pass due to broad shareholder support and Musk’s own 13.5% voting stake.