WhatsApp LLC Vs Competition Commission of India (NCLAT Delhi)
NCLAT Delhi held that penalty imposed by Competition Commission of India [CCI] of Rs. 213.14 crore upon Meta upheld on sharing WhatsApp user data with other Meta companies. Accordingly, appeal partly allowed.
Facts- These two Appeals have been filed against order dated 18 November 2024 passed by the Competition Commission of India under Section 27 of the Competition Act, 2002. The Competition Appeal No. 1 of 2025 has been filed by WhatsApp LLC and Competition Appeal No. 2 of 2025 has been filed by Meta Platforms, Inc.
The Competition Commission of India, in its Order dated 18 November 2024, found that WhatsApp (Meta) abused dominance by using a 2021 privacy policy to impose unfair conditions on users leverage dominance in OTT messaging Apps through smartphones in India to strengthen Meta’s position in online display advertising and imposed a ₹213.14 crore penalty and remedy of a 5-year restriction on sharing WhatsApp user data with other Meta companies for advertising. The impugned order has found the Appellants to have violated the provisions of the Competition Act, 2002 through imposition of WhatsApp privacy policy of 2021.
Conclusion- Held that Meta is not dominant in the market for “online display advertising in India” but a leading player. But its conduct has caused anticompetitive effects in the market for “online display advertising in India” by denial in this market. We have determined earlier, it is the WhatsApp alone, which is dominant in relevant market of OTT messaging apps through smartphones in India and is also found to have abused its dominant position and violated Section 4(2)(a)(i) of the Act. Thus, imposition of penalty on WhatsApp is wholly justified. But in case of Meta group, we find that in online display advertisement market, they have violated section 4(2)(c) but not Section 4(2)(e). We also note that the violation of Section 4(2)(e) to be not sustainable as WhatsApp and Meta are separate legal entities, even though Meta is acquired WhatsApp and has full control company. Still there is a violation of Section 4(2)(a(i) and section 4(2)(c) – by WhatsApp and by Meta group respectively.
