JOIN USDelhi High Court refuses to stay CCI notice to Facebook, WhatsApp in privacy policy matter
The Delhi High Court has refused to stay a notice issued by the Competition Commission of India, asking Facebook's owned WhatsApp to furnish certain information in relation to the probe being ordered in March on the instant messaging app's new updated privacy policy.
A vacation bench of Justices Anup J Bhambhani and Jasmeet Singh noted that Additional Solicitor General Aman Lekhi has "fairly" stated that the issuance of notice on June 4 was perfectly in line with the procedure contemplated under the statute for taking forward an ongoing investigation.
"The notice has not been stayed by the division bench, and it would take substantial time for preparation of a report pursuant to the receipt of the information called-for by way of the impugned notice; which report would thereafter be forwarded to the Competition Commission of India," it said.
Lekhi also submitted that preparation of the report would not be completed at least before the next date of hearing before the regular bench on July 9.
The court said since the investigation against the appellant was under judicial consideration before a division bench, the matter would be taken by the regular bench.
While reserving its order, the court had said that it would not like to go into the merits of the case as the regular bench led by the Chief Justice was scheduled to hear the main petitions on July 9.
Facebook and WhatsApp challenged a single judge's April order dismissing their pleas against the CCI probe.
The CCI had on March 24 ordered a probe into the updated privacy policy of WhatsApp for breaching the antitrust law. “CCI is of prima facie opinion that the ‘take-it-or-leave-it’ nature of privacy policy and terms of service of WhatsApp and the information-sharing stipulations mentioned therein, merit a detailed investigation in view of the market position and market power enjoyed by WhatsApp,” the CCI order stated. The CCI in January had on its own decided to look into WhatsApp's new privacy policy on the basis of news reports.
Facebook and WhatsApp in their fresh applications on Monday urged the High Court to put on hold the CCI’s June 4 notice asking them to furnish certain information requiring during the probe ordered by it into the instant messaging app's new privacy policy.
Senior counsel Harish Salve and Mukul Rohatgi, appearing for WhatsApp and Facebook, respectively, had then requested the bench to stay the June notice on the grounds that the last date to respond was on Monday itself.
Salve argued that the instant messaging services’ privacy policy was already under challenge in the Supreme Court and the Delhi High Court and the anti-trust regulator should not have intervened in the issue. Besides, the government was also looking into it, they contended. They also claimed the CCI's decision was an abuse of its suo motu jurisdiction. The Commission had drifted far away from the competition issue and was looking into privacy issues which were already before the apex court and the Delhi High Court, they submitted.
Additional Solicitor Generals Aman Lekhi and Balbir Singh, representing CCI, opposed any stay, saying no threat was looming over the head of WhatsApp till the report on the inquiry was submitted with the competition watchdog.
"The whole process of investigations is a lengthy process and the Director General after investigations will have to submit its report to CCI and this furnishing of information will not precipitate any action against them," they added.
Singh also said that since there was a statutory order against Facebook and WhatsApp, they should not use the High Court’s order to argue that they will not furnish the information sought by CCI at this stage.