New Delhi, Aug 19 (IANS) The Competition Commission of India (CCI) has set aside an antitrust complaint against WhatsApp, over the alleged use of its dominant position to expand in the UPI-enabled digital payments segment.
The complainant had alleged that Facebook-backed WhatsApp, by using its dominance in the Internet-based instant messaging space, is bundling its messaging app with the payments option — WhatsApp Pay — thereby using such dominance to penetrate into the UPI-enabled digital payments app market.
Further, by enabling automatic installation of WhatsApp Payments App in the WhatsApp Messaging App, WhatsApp is alleged to be taking advantage of its vast user base to popularise its newly launched WhatsApp Pay App, the complainant alleged. As per the allegation, WhatsApp violated Section 4 of the Competition Act.
The antitrust body dismissed the complaint, saying that it did not find any contravention of the said Act.
“In view of the foregoing, the Commission is of the opinion that there exists no prima facie case of contravention and the information filed is directed to be closed under Section 26(2) of the Act,” the order said.
In its submission, WhatsApp said that WhatsApp Pay is only in the beta phase, it cannot be even said to exist as a separate product. It said that the allegation of bundling is without merit and does not satisfy the conditions of bundling as understood in the antitrust context.
“Firstly, it has been submitted that the WhatsApp application and the payments feature are not separate products, rather it is an additional feature, whose commercial launch is subject to approval by NPCI,” it said.
WhatsApp’s ‘product’ is the WhatsApp applications in relation to post-CIRP companies may be mandated to achieve at least 10 or 5 per cent public shareholding. A major concern with 5 per cent threshold is that it is a miniscule threshold to allay certain concerns, however a lower threshold may incentivise companies from staying listed and any higher threshold may push for total delisting.”
She noted that the additional disclosure requirements pertaining to pre and post net-worth of the company, description of business strategy, impact on investors, resolution plan details, among others, are steps in the right direction and are likely to enhance transparency of the CIRP and reinstate investor trust and confidence.
–IANS
rrb/sn/vd