Shri Vinod Kumar Gupta, Chartered Accountant v. WhatsApp Inc.

CCI1 Jun 201799/2016

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The Competition Commission of India examined an information alleging WhatsApp abused its dominant position via predatory pricing and privacy policy changes. Finding no prima facie case, the Commission held allegations regarding free services unsubstantiated and deemed privacy/IT Act claims outside its scope, closing the matter.

What the court decided

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Shri Vinod Kumar Gupta, Chartered Accountant Vs. WhatsApp Inc. — Company and Corporate | CCI (2017)

Shri Vinod Kumar Gupta, Chartered Accountant v. WhatsApp Inc.

CCI1 Jun 201799/2016

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¶36

The Commission notes that as per Section 2(r) of the Act, ‘relevant market’ means the market which may be determined by the Commission with reference to the ‘relevant product market’ or the ‘relevant geographic market’ or with reference to both the markets. In regard to the relevant product market, the Commission notes that ‘WhatsApp’, an instant communication app for smartphones using standard cellular mobile numbers, is a platform for communication through texting, group chats and voice and video calls. It is noted that instant communication apps cannot be compared with the traditional electronic communication services such as text messaging, voice calls etc. as provided by various telecommunication operators. It is so because unlike traditional modes of communication, instant messaging using communication apps are internet based and provide additional functionalities to the users. For example, users of communication apps can see when their contacts are online, when they are typing or when they last accessed the application. Further, instant communication apps can be used through smartphones only whereas traditional electronic communication services can be used through any mobile phone. There are also differences in the pricing conditions in both the abovesaid modes of communication. ‘WhatsApp’ is a free to download communication application which does not charge any fee from its users for providing the services and just uses internet connection on the device to send instant messages, connect voice calls etc . Further, text messaging through traditional modes can be done between people who do not use the mobile service of the same service provider, whereas instant messaging services typically require you and your contacts to be on the same communication application platform. Thus, the Commission is of the view that the relevant product market in this case may be considered as ‘the market for instant messaging services using consumer communication apps through smartphones’ .

Shri Vinod Kumar Gupta, Chartered Accountant v. WhatsApp Inc.

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Shri Vinod Kumar Gupta, Chartered Accountant v. WhatsApp Inc.

Case brief

What is this about?

What the court decided

Issues for consideration

Cases cited

Parties & counsel

Coram

Case details

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