SUMMARY
The apex court states that the CCI is an independent authority to consider any violation of the Competition Act provisions
CCI has alleged infringement of user privacy, sharing users’ data with Facebook and examining WhatsApp’s abuse of dominance
Earlier, Meta approached Delhi HC twice, and the court ruled in favour of CCI in both cases
Inc42 Daily Brief
Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy
The Supreme Court has rejected Meta’s (previously Facebook) plea that challenged the competition watchdog’s probe into the messenger app WhatsApp.
The court stated that the competition commission of India (CCI) is an independent authority to consider any violation of the provisions of the Competition Act of 2002 and no interference is required by this court in the High Court order.
The court added that CCI’s probe cannot be considered without jurisdiction and that if the competition watchdog is moving ahead with an investigation, the matter is to be considered on its own merits.
That is, the Supreme Court has greenlighted CCI’s probe into WhatsApp’s updated privacy policy that alleges infringement of user privacy, sharing users’ data with Facebook and examining WhatsApp’s abuse of dominance.
Facebook, WhatsApp Vs CCI – A Tug Of War In Courts
In early 2021, CCI launched a probe into WhatsApp over its policy updates alleging preferential treatment to business accounts by leveraging conversations on the app for targeted advertising.
CCI has suggested that WhatsApp’s ‘take it or leave it’ policy hampers the consumer’s right to data privacy and is exploitative in nature, considering the large user base the platform has amassed in the country.
Thus, CCI has argued that the update would lead to ‘excessive data collection’ and ‘stalking’ of consumers for advertising. Against this, Meta had claimed that CCI did not have prima facie material to begin a probe into the case.
It even went as far as calling the watchdog’s investigation, a ‘creeping fashion’. The messaging app has asked the court to put a stay on CCI’s probe till the data privacy bill is implemented.
In May 2021, WhatsApp moved a single-judge bench in the Delhi High Court for a stay on the probe. The bench had then ruled in favour of the CCI and WhatsApp moved to a two-judge bench of the Delhi HC.
Even the two-judge bench ruled in favour of CCI in August and declined to intervene any further. The high court held that WhatsApp’s privacy policy shares sensitive data with Facebook and ‘virtually forces users into an agreement by providing a mirage of choice’.
The US-based social media platform then decided to move to the SC in early October 2022 and has yet again declined relief from an investigation.
Note: We at Inc42 take our ethics very seriously. More information about it can be found here.