Particle.news
Download on the App Store

CCI Tells NCLAT WhatsApp Abused Dominance With 2021 Policy Forcing Data Sharing

The regulator argued the update removed meaningful choice by making continued use contingent on cross-platform data integration.

Overview

  • Presenting arguments in the ongoing appeal, the CCI said WhatsApp’s 2021 terms created a take‑it‑or‑leave‑it choice that eliminated an opt‑out from cross‑service data sharing.
  • The CCI contended Meta’s integration of WhatsApp with Facebook and Instagram delivers unmatched reach and network effects that make switching difficult for users.
  • Regulators argued that WhatsApp‑to‑Meta data is monetised across the ecosystem and asserted Meta pursues early acquisitions of potential disruptors to block emerging competition.
  • WhatsApp and Meta countered that the CCI exceeded its competition mandate by venturing into privacy issues and lacked empirical evidence such as user surveys or rival usage data.
  • The NCLAT is hearing the challenge to the CCI’s Rs 213.14 crore penalty; a prior interim order stayed the five‑year ad‑related data‑sharing ban and directed a 50% deposit of the fine, with no final ruling yet.