CCI probe into Whatsapp's anti-trust practices delayed as company holds back info

New Delhi: The Competition Commission of India (CCI) probe into the alleged anti-trust practices by Whatsapp has been delayed as the instant messaging company was reluctant to provide information related to its new privacy policy, people with direct knowledge of the matter said.

CCI commissioned an investigation into Whatsapp’s new privacy policy in March 2021 but the company has neither supplied documents sought nor responded to the prima-facie observations made by CCI, people cited above said.

The technology company is learnt to be taking a stance that the platform will not provide its views on the subject until the parliament passes the new data privacy law. In the meantime, the social media platform is learnt to have shifted most of its India users into the new privacy policy on a ‘voluntary basis.’


However, CCI is of the view that its probe has nothing to do with data privacy aspects since the focus of the investigation is whether the instant messaging platform has misused its market dominance position to force its users to sign up for its new privacy policy.

Under new privacy policy, Whatsapp will be able to share its user data with third parties including its parent company Facebook. This is to help Whatsapp monetize the user data and generate revenue.

"No comments as the matter is sub-judice" said a Whatsapp spokesperson responding to ET’s queries. An email sent to CCI remained unanswered.

CCI has sent three notices to Whatsapp – two in March 2021 and one in June 2021. Whatsapp moved the Delhi High Court challenging CCI’s powers to order an investigation into its privacy policy. The case is currently pending.

“Whatsapp sought a stay on these proceeding as interim relief which has not been provided so far by the court, hence there is no stay on the investigation,” said a person with direct knowledge of the matter.

“The company is still seeking adjournments to delay providing information sought by CCI, which is crucial for the progress of the probe. Further, they are also going ahead and implementing the new privacy policy that itself is under probe,”

According to Delhi High Court Website, Whatsapp was asked to respond to court notices and provide its views on the matter by July 2021, which was extended till August 27, 2021 initially. Since then, the court has given four extensions to Whatsapp and the new deadline for filing the reply is by July 21, 2022.

Originally, the updated privacy policy of Whatsapp needed users to accept it, failing which some of the key features of Whatsapp would stop functioning for them. CCI alleged that Whatsapp was using its dominant position in the instant messaging market to force its users to accept the new privacy policy.

In July 2021, Whatsapp told the Delhi Court it would not force users to shift to updated privacy policy and if any of the existing users do not accept the terms of the new policy, their features will not be downgraded.