WhatsApp Has Not Abused Its Dominant Position in India, Rules NCLAT

 The NCLAT has put aside a petition and upheld a 2017 CCI order that dismissed a grievance of predatory pricing towards prompt messaging platform WhatsApp.

The National Company Law Appellate Tribunal (NCLAT) stated little doubt WhatsApp has a ‘dominant place’ nevertheless it has not ‘abused its dominant place’ based mostly on inputs supplied by the appellant, an NGO Fight for Transparency Society.

“We do not find any inconformity in the findings of Competition Commission of India (CCI) and hence, the ‘Appeal’ deserves to be dismissed and accordingly is dismissed,” stated the NCLAT order dated August 2, 2022.

The Competition Commission of India (CCI) on June 1, 2017 rejected the grievance of the NGO alleging predatory pricing by WhatsApp, which was acquired by Facebook in 2014, by not charging any subscription price from the customers.

The NGO had alleged that WhatsApp has made many modifications to its privateness coverage from the time Facebook acquired it, which was an abuse of its dominant place.

The grievance was rejected by the CCI, following which the NGO challenged the order earlier than the NCLAT, requesting that the honest commerce regulator’s order be put aside and route be issued to launch an investigation within the matter.

The NCLAT noticed that merely updation of phrases and circumstances and the customers consenting or non-consenting doesn’t quantity to an abuse of dominant place within the related market the place WhatsApp is working as one of many service suppliers within the type of messaging App.

The two-member bench additionally noticed that out there a number of messaging suppliers can be found.

“In the digital age it has become a common practice,” stated NCLAT, which is an appellate authority over the orders handed by the CCI.

The NCLAT additionally stated the legislation laid down by overseas authorities shouldn’t be binding on it.