Delhi HC dismisses WhatsApp, Facebook pleas against CCI probe. Details here

The Division bench of the Delhi High Court has dismissed the petitions of Whatsapp and Facebook that challenged the Competition Commission of India (CCI) order asking for a detailed probe into the popular messaging app's 2021 updated privacy policy. The bench said that the petition is devoid of merit. In July, Facebook's parent company Meta had said that CCI’s actions were intrusive in its business and that there was no material to prove it was abusing its market dominance.

The division bench of Justice Satish Chandra Sharma and Justice Subramonium Prasad had reserved the order on July 25, 2022, after both sides completed their submissions in the case.  On Thursday, while dismissing both the appeals, which were separately filed by Whatsapp and Facebook, the bench said it will not extend the stay granted on notices CCI had issued to the messaging apps.

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Earlier this year, a single bench of the Delhi High Court dismissed Facebook and WhatsApp pleas on April 24, where it had challenged the CCI order, which had asked for a separate probe into the messaging app’s new privacy policy. The petitioners, Whatsapp and Facebook, had challenged the March 24 order and approached the Division bench for relief. The CCI in its order had demanded a probe into the 2021 privacy policy, and that the probe should be done within 60 days.

Facebook and Whatsapp plea

As per reports, the CCI initiated a fresh probe on its own over the privacy policy of Whatsapp and Facebook in March 2021. A single bench judge upheld the order.

In July 2021, Whatsapp told the court that it has “voluntarily agreed to put on hold” the policy till a data protection law is enacted in the country. It said users will not be compelled to accept the policy.

Whatsapp in its argument had said as the Supreme Court and High Court are hearing the matter, CCI should not order another probe. Senior advocate Harish Salve, who appeared from Whatsapp, and former Attorney General Mukul Rohatgi, who appeared for Meta, said “CCI proceedings must be kept in abeyance as the matter is pending before the Supreme Court and High Court”.

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Rohatgi even said that as Facebook is the formal owner of Whatsapp and the platform is said to share its data with Facebook (parent company), that doesn't mean it is a necessary party to investigate.

CCI’s probe 

CCI had insisted that a separate probe against the policy should be allowed irrespective of the fact that the matters are pending in the Supreme Court and High Court. It added that WhatsApp has gone ahead with the implementation of its 2021 privacy policy, and that makes the probe valid. CCI said there is no “overlapping” of issues even though the apex court is looking into the alleged infringement of the user’s privacy.

CCI in its filing has alleged Whatsapp of “excessive data collection” and “unauthorised sharing of customers’ data”. CCI also said that WhatsApp and its parents' company Facebook are “abusing their dominant position”