Competitors Commission Dismisses Predatory Pricing Complaint Against WhatsApp
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Declining a grievance, the reasonable trade regulator stressed that there are no considerable expenses avoiding the users to change from one customer interaction application to another.
Press Trust of India|Last Updated: June 01, 2017 22:27 (IST)
New Delhi: There is “no compound” in the accusations of predatory prices made versus WhatsApp despite the fact that the messaging app is dominant in the pertinent Indian market, inning accordance with Competition Commission of India (CCI).
WhatsApp Inc was obtained by Facebook in 2014.
Turning down a problem, CCI today stressed that there are no substantial expenses avoiding the users to change from one customer interaction application to another.
To name a few, it was declared that WhatsApp is delighting in predatory rates by not charging any membership cost from the users considering that January in 2015.
To evaluate the grievance, the reasonable trade regulator thought about ‘the marketplace for immediate messaging services utilizing customer interaction apps through mobile phones in India’ as the pertinent one.
” … the Commission is of the view that although ‘WhatsApp’ seems dominant in the pertinent market, the claims of predatory prices have no compound and the opposite celebration has actually not contravened any of the arrangements of Section 4 of the (Competition) Act,” the regulator stated in an order today.
Area 4 relate to abuse of dominant position.
Inning accordance with the guard dog, all customer interaction apps are used totally free of expense or at a really low cost and are typically characterised by easy interface so that expenses of changing to a brand-new app are very little for customers, “Furthermore, the growth of Hike Messenger to almost 100 million user base within 3 years of introducing their services into the aforementioned market shows that in this market, there are no substantial barriers to entry and customers seem rate delicate,” the order stated.
CCI stated that accusations of WhatsApp breaching the Information Technology Act, 2000 do not fall within the province of assessment under the arrangements of the Competition Act.
The problem was submitted by one Rajasthan-based chartered accounting professional Vinod Kumar Gupta on behalf of Fight for Transparency Society.