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ARTICLE · 13 JULY 2017

Who Will Bell The Apps?

Luthra and Luthra Law Offices India
Luthra and Luthra Law Offices India
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It was against this background that the Commission was considering the Informant's case.

IndiaAntitrust/Competition Law
Modhulika Bose
Modhulika Bose
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How Facebook and WhatsApp won over Sections 4 and 5 of the Competition Act, 2002 in a Big Data Economy.

On 01.06.2017, the Competition Commission of India ('Commission') dismissed an abuse of dominance case against WhatsApp Inc. under Section 26(2) of the Competition Act, 2002 ('Act'), in Case No.99 of 2016. The following case comment attempts to briefly analyze this 26(2) order ('Order') and also to contextualize it against Facebook's acquisition of WhatsApp.

On 19.02.2014, Facebook Inc. announced the acquisition of WhatsApp Inc. for approximately US $19.3 billion. The acquisition was not notifiable in India as it did not trigger the asset or turnover thresholds prescribed under Section 5 of the Act. It may also be noted that the under the Act, the Commission does not have suo-motu powers to review mergers which can potentially raise AAEC concerns unless thresholds under Section 5 have been met.

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