CCI claims WhatsApp abused dominant position with ‘take-it-or-leave-it’ policy

The Competition Commission of India (CCI) told the National Company Law Appellate Tribunal (NCLAT) that Meta’s size and integration of its platforms—Facebook, Instagram, Messenger, and WhatsApp place it far ahead of competitors, making WhatsApp the dominant player in India’s messaging app market. Appearing for the CCI, Senior Advocate Balbir Singh argued that no other player comes close to WhatsApp in terms of user dependence, network effects, and cross-platform synergy. “WhatsApp’s reach and daily engagement levels, reinforced by powerful network effects, ensure that users remain locked into the service,” Singh said. He added that even if users install other apps like Telegram and Signal, activity remains concentrated on WhatsApp because switching requires convincing an entire network of contacts to migrate. Singh asserted that this dominance was abused when WhatsApp imposed its 2021 privacy policy on a “take it or leave it” basis. He described the notifications as creating a “manufactured sense of urgency,” which left users with little choice but to comply out of fear of losing access to the service. The senior advocate also highlighted that the 2021 policy removed a limited opt-out safeguard that had existed previously, compelling users who had once rejected cross-platform data sharing to accept it.
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