Bombay High Court Rejects Meta Request to Move Ad Agency Lawsuit to US

The Bombay High Court has dismissed a petition by Meta Platforms Inc. to transfer a ₹1,000 crore lawsuit filed by Indian advertising agency Blink Digital India to the United States. The court ruled that private contracts cannot supersede mandatory Indian laws, allowing the commercial suit to proceed within India.

Key Takeaways

• Jurisdiction ruling: Justice Sandeep V. Marne determined that private agreements between parties cannot override Indian legal mandates.
• Legal conflict: Meta sought to move the case to California, citing terms that require commercial disputes to be settled under Californian law.
• IT Rules: The court observed that the dispute involves alleged violations of India’s Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021.
• Subsidiary involvement: Meta’s Indian subsidiary, Facebook India Online Services, did not challenge the court’s jurisdiction, and the court ruled Meta could not object on its behalf.
• Case origin: Blink Digital filed the lawsuit after Meta disabled four Business Manager accounts and approximately 9,000 linked advertising accounts in August.

Background of the Dispute

Blink Digital, an advertising agency founded in 2009, initiated the suit in September seeking the restoration of its accounts and damages totaling ₹1,000 crore. The agency uses Meta’s Business Manager platform to manage advertising infrastructure for various clients, including KFC, ITC, and Puma. According to court filings, the suspension of these accounts caused the agency’s active ad campaigns to halt.

Meta’s defense argued that its terms of service mandate that disputes be resolved exclusively in California. However, the court found the matter extends beyond a simple contractual breach, noting the involvement of Indian IT regulations. The proceedings are ongoing, with the court allowing time for both parties to file additional affidavits and rejoinders.