Competition Commission rejects complaint against WhatsApp – Times of India


The Competitors Fee has dismissed a grievance of alleged unfair enterprise practices by well-liked messaging platform WhatsApp with respect to digital funds market within the nation. It was alleged that Fb-owned WhatsApp has abused its dominance within the ‘marketplace for internet-based messaging software by smartphones’ to control one other market — ‘marketplace for UPI enabled digital fee functions’ in its favour.
In a 41-page order, the Competitors Fee of India (CCI) mentioned there was no violation of Part four of the Competitors Act. This part pertains to abuse of dominant place.
To evaluate the grievance, the watchdog thought-about two related markets — ‘marketplace for Over-The-High (OTT) messaging apps by smartphones in India’ and ‘marketplace for UPI (Unified Fee Interface) enabled Digital Funds Apps in India’.
Based on the regulator, the informant has contended that WhatsApp will leverage its dominance within the upstream market to have a aggressive edge over present opponents.
The informant additionally appears to be distressed by the truth that whereas the opposite present gamers spent appreciable assets to ascertain themselves within the UPI-enabled digital fee app market, WhatsApp will get customers on its platter with out making any efforts, CCI mentioned within the order.
“The apprehensions of the informant, based on Fee, does not likely maintain a lot advantage. As said above, the UPI market is sort of established with famend gamers competing vigorously. In such a market, it appears implausible that WhatsApp Pay will robotically garner a market share merely on account of its pre-installation,” it famous.
Extra so, given the truth that WhatsApp ecosystem doesn’t contain paid companies as such for regular customers, it appears unlikely that the buyer site visitors shall be diverted by WhatsApp utilizing its energy within the messenger market, as per the order dated August 18.
Relating to the informant’s claims that WhatsApp is in severe non-compliance of important and necessary procedural norms pertaining to knowledge localisation and storage, the regulator mentioned that they “don’t appear to boost any competitors concern and as such could not want any additional scrutiny by it”.


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