Delhi HC quashes WhatsApp appeal against CCI probe into privacy policy

The Delhi High Court has quashed a fresh appeal made by WhatsApp and its parent Facebook to stay a notice from the Competition Commission of India (CCI) which sought information in an ongoing probe into the instant messaging app’s updated privacy policy.

A vacation bench of Justices Anup Jairam Bhambhani and Jasmeet Singh, which heard WhatsApp’s plea on Monday, said that the prayers made by the appellants were identical to the ones made before the Division Bench which has not granted any interim relief in the case.

“For the foregoing reason, we do not consider it appropriate to stay the operation of impugned notice dated June 4, 2021, at this stage,” the order read.

The court added that it had no doubt that the notice issued by the director general of the CCI on June 4 was a step in “furtherance of the investigation” which was ordered into WhatsApp’s updated privacy policy in March this year.

It further urged the Director General (of CCI) to “bear in mind” that the investigation against the appellant is under judicial consideration before a Division Bench. The next date of hearing will be on July 9.

WhatsApp and Facebook had sought a stay on the June 4 notice from the CCI ordering them to submit certain documents in relation to the probe. The companies had argued how the commission could examine an issue that was being examined by the Supreme Court.

Additional Solicitor General (ASG) Aman Lekhi who was representing the CCI had opposed the pleas, stating that the commission’s probe was still in its early stages and the information furnished would not lead to any order by the commission immediately.

The last day for WhatsApp and Facebook to furnish details sought by the CCI was June 21, failing to do so they could be penalised, as per the order issued by the commission. ET could not ascertain what the exact nature of these penalties could be.

The CCI has maintained that while the Supreme Court case is examining the privacy aspect of WhatsApp’s updated privacy policy, it is looking into the implications of the same from a competition aspect.

“The Commission is of the considered opinion that WhatsApp has prima facie contravened the provisions of Section 4 of the Act through its exploitative and exclusionary conduct…in the garb of policy update,” the March order by the CCI had read.

WhatsApp has deferred the privacy update from May 15 and has told the government that it will not restrict functionality for users till the proposed Personal Data Protection BIll comes out as a law.