NCLAT upholds CCI Order, but Quashes Plea claiming abuse of dominant Positions Through WhatsApp


There exists no doubt WhatsApp is a dominant position and has not misused its dominant position in light of the inputs supplied by the appellant NCLAT

Just the change in terms and conditions, and users’ consent or non-consent to it doesn’t amount in a blatant abuse dominance The two-member bench said

A non-profit organization, Fight for Transparency Society stated that WhatsApp was engaged in a scheme to extort money from users because it didn’t charge users any subscription fees. users.

The National Company Law Appellate Tribunal (NCLAT) has rejected the plea of the instant messenger app WhatsApp of engaging in shady pricing.

The two-member NCLAT bench NCLAT also upheld an decision of the Competition Commission of India (CCI) that dismissed the case which claimed that there was a monopoly abuse by the Meta-owned firm.

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A non-profit organization, Fight for Transparency Society claims that WhatsApp was engaged in pricing scams that were extortionist in that it did not charge any subscription fee to users.

According to an report by PTI, in a report in the NCLAT declared that although it is clear that WhatsApp holds a ‘predominant position but it hasn’t misused its dominant position in response to inputs from the appellant.

“We don’t observe any contradiction in the conclusions that were made by CCI and, therefore the appeal should be dismissed and , as such, dismisses the appeal,” NCLAT said in an order dated August 2. NCLAT said in a decision dated August 2.

The NGO also raised the accusation of abuse of the dominant position on WhatsApp due to the many changes to privacy policies made by WhatsApp after it was acquired by Facebook (now Meta) in 2014.

The NCLAT noted that the change in terms and conditions and users’ consent or non-consent to it doesn’t amount to the abuse of dominant position in the market that WhatsApp operates as a provider of services through its messaging apps.

The bench also pointed out that a variety of messaging services are on the marketplace. “In the digital age , it is now a standard practice,” the bench added.

It is worth noting that following the CCI’s denial on the appeal, the organization made an appeal in the case before the NCLAT asking that the decision of the competition watchdog be rescinded and that the NCLAT issue orders to initiate an investigation into the matter.

Additionally, WhatsApp is also being investigated from the CCI concerning WhatsApp’s controversial 2021 privacy policy change. In the latest round of appeals made from WhatsApp and Facebook both platforms have filed appeals against the previous ruling that disallowed their appeals against the probe initiated by the CCI to investigate WhatsApp’s revised privacy policy.

At the time of the hearing, July in July, it was decided that the Delhi High Court deferred the hearing until September, after the parties in the matter informed the court that similar cases were under consideration by the Supreme Court.

Meta has also been dissented by the authorities several times due to the lack of implementation of legal notices, and for its inability to combat fake news.

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