The CCI began an investigation into WhatsApp’s new privacy policy in March 2021, but the company has neither supplied the requested documents nor responded to prima facie comments made by the CCI, the people cited above said.
The technology company is understood to have said the forum will not provide its views on the subject until Parliament passes a new data privacy law. Meanwhile, the social media platform has moved most of its Indian users to the new privacy policy on a ‘voluntary basis’.
However, the CCI is of the view that its investigation has nothing to do with data privacy aspects as the focus of the investigation is whether the instant messaging platform has tried to force its users to sign up for its new privacy policy. Has abused its market dominance position.
Under the 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 user data and generate revenue.
Responding to ET’s queries, a WhatsApp spokesperson said, “No comment as the matter is sub-judice.” Emails sent to CCI did not elicit any response.
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CCI has sent three notices to Whatsapp – two in March 2021 and one in June 2021. Whatsapp challenged the CCI’s powers to order an inquiry into its privacy policy in the Delhi High Court. The matter is presently under consideration.
A person with direct knowledge of the matter said, “WhatsApp sought a stay on these proceedings as an interim relief, which has not been granted by the court so far, so there is no stay on the investigation.”
“The company is still seeking an adjournment for the delay in providing the information sought by the CCI, which is critical to the progress of the investigation. In addition, they are going ahead and implementing the new privacy policy which is being investigated.”
According to the Delhi High Court website, WhatsApp was asked to respond to the court’s notice and give its views on the matter by July 2021, which was initially extended till August 27, 2021. Since then, the court has given four extensions to WhatsApp and the new deadline for filing replies is July 21, 2022.
Originally, WhatsApp’s updated privacy policy required users to accept it, failing which some key features of WhatsApp would stop working for them. The CCI alleged that WhatsApp is using its dominant position in the instant messaging market to force its users to accept the new privacy policy.
In July 2021, WhatsApp told a Delhi court that it would not force users to move to the updated privacy policy and that their features would not be downgraded if an existing user did not accept the terms of the new policy.
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