Delhi HC hits Facebook, WhatsApp, quashes the plea against CCI order to probe privacy policy
22 Apr 2021 17:52:01
New Delhi, April 22: Giving the major blow to the social media giants, Delhi High Court dismissed pleas filed by social media platforms Facebook and WhatsApp, and refuses to stop CCI Competition Commission of India probe into Whatsapp's privacy policy.
Single Judge Bench of Justice Navin Chawla pronounced the order saying it did not find merit in the petition and refused to quash the CCI probe. He added probe cannot be quashed merely because CCI did not await the outcome of the cases pending before the Supreme Court and the High Court.
Justice Chawla further states though it would have been "prudent" for the Competition Commission of India (CCI) to await the outcome of petitions in the Supreme Court and the Delhi HC against WhatsApp's new privacy policy, but not doing so would not make the regulator's order "perverse" or "wanting of jurisdiction".
During the case hearing, CCI had argued before the court that the new privacy policy of WhatsApp would lead to excessive data collection and "stalking" of consumers for targeted advertising to bring in more users and is, therefore, alleged abuse of dominant position.
Additional solicitor general Aman Lekhi appeared for CCI. also told the court that only after the investigation can it be determined whether the data collection by WhatsApp and sharing it with Facebook would amount to an anti-competitive practice or abuse of dominant position.
CCI defended its order by clarifying that the issue before the regulator was only with respect to the anti-competitive aspect of the policy and that there was no clash with the courts on issues of privacy.
On 24 March this year, CCI has ordered the probe into WhatsApp's New Privacy Policy after observing that the privacy policy terms on sharing of personalised data with Facebook companies were "neither fully transparent nor based on the specific, voluntary consent of users." In its 21 pages order, Commission has directed the Director-General to initiate a probe against the company under the provisions of Section 26(1) of the Competition Act. Moreover, the commission has also directed the DG to complete the investigation and submit the investigation report within a period of 60 days from the receipt of this order.
Following which Facebook and WhatsApp had moved the High Court earlier this month against the CCI order calling for a Director General (DG) probe to ascertain the full extent, scope, and impact of data sharing through involuntary consent of users. The two social media platforms had contended that when the top court and the Delhi High Court were looking into the privacy policy, then CCI ought not to have "jumped the gun" and intervened in the issue.
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