CCI Dismisses Predatory Pricing Complaint Against Whatsapp
By Team Legistify / 2017-06-08

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CCI order .. the Commission is of the view that even though ‘WhatsApp’ appears to be dominant in the relevant market, the allegations of predatory pricing have no substance and the opposite party has not contravened any of the provisions of Section 4 of the (Competition) Act.

There is "no substance" in the allegations of predatory pricing made against WhatsApp even though the messaging app is dominant in the relevant Indian market, according to the Competition Commission of India (CCI). WhatsApp Inc was acquired by Facebook in 2014.

Rejecting a complaint, the CCI on Thursday emphasised that there are no significant costs preventing users to switch from one consumer communication application to another.

Among others, it was alleged that WhatsApp is indulging in predatory pricing by not charging any subscription fee from the users since January last year.

To assess the complaint, the fair trade regulator considered 'the market for instant messaging services using consumer communication apps through smartphones in India' as the relevant one.

Section 4 pertains to abuse of dominant position.

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