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Meta challenges CCI’s penalty, says no evidence of market denial
Meta told NCLAT that CCI based case on hypothetical scenarios and wrongly defined relevant market.
Meta has appealed against a penalty of Rs 213.14 crore imposed by CCI for alleged abuse of dominance through unfair practices tied to WhatsApp’s privacy policy update.
Meta platforms on September 15 told the National Company Law Appellate Tribunal (NCLAT) that the Competition Commission of India (CCI) had failed to establish any conduct by the company that denied market access to rivals.
The social media giant argued that the regulator’s findings on WhatsApp’s 2021 privacy policy update were based on speculative scenarios rather than actual evidence.
Appearing for Meta, Senior Advocate Amit Sibal submitted that CCI’s case “falls woefully short” of the legal standard under Section 4(2)(c) of the Competition Act, which requires proof of conduct that has occurred or is occurring. “The CCI has not demonstrated any actual effect of WhatsApp’s 2021 privacy policy update on the alleged market for online display advertising,” he told the tribunal.
Sibal added that the limited data sharing through optional features- such as Click-to-WhatsApp ads- had not impacted rivals in online display advertising. He also criticized the CCI for failing to consult advertisers on available services and levels of substitutability, while defining a “narrow and artificial” market of online display advertising that excluded search and offline advertising.
Meta has appealed against a penalty of Rs 213.14 crore imposed by CCI for alleged abuse of dominance through unfair practices tied to WhatsApp’s privacy policy update. The company contends that competitor testimony from players like Google and Amazon was wrongly disregarded by the regulator.
The NCLAT hearing also included arguments from WhatsApp, represented by Senior Advocate Arun Kathpalia, who concluded submissions on September 15. WhatsApp maintained that CCI has no jurisdiction over data safety issues and said its 2021 update did not deviate from its 2016 privacy policy.
Sibal will continue presenting Meta’s arguments before NCLAT on September 16.
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