Abuse of dominance not proved by CCI, Meta tells NCLAT

Meta told NCLAT that integrating WhatsApp data enhances advertiser value and market leadership, adding CCI failed to prove abuse in its dominance case

Meta told the National Company Law Appellate Tribunal (NCLAT) on Monday that none of its rivals comes close to the market position it enjoys, but that does not establish abuse of dominance.

 

It said the integration of WhatsApp data augments its capabilities, enabling it to provide more value to advertisers and strengthen its leadership.

 

“This is evident from advertisement revenue data in the display advertising market, where none of the rivals is near the position enjoyed by Meta. Even the closest competitors remain significantly behind. The integration of WhatsApp data further augments Meta’s capabilities, allowing it to provide more value to advertisers and reinforcing its market leadership,” Meta told the tribunal.

 

It added that by collecting data from multiple platforms, Meta can promise advertisers the best returns in terms of clicks, engagement, and conversions per rupee spent.

 

“This makes it the dominant player in the display advertising market,” it said.

 

The company said its competitive advantage lies in its ability to collect and aggregate data from multiple sources, including first-party apps such as Facebook, WhatsApp, Instagram, and Facebook Messenger, along with external third parties.

 

“This process enables Meta to collect data at a pace and scale unmatched by any other competitor,” it told the tribunal.

 

The submissions were made before a bench of Justice Ashok Bhushan (chairperson) and Barun Mitra (member-technical). The bench was hearing Meta Platforms and WhatsApp’s appeal against the CCI order imposing a fine of Rs 213.14 crore on the company for alleged abuse of its dominant position linked to WhatsApp’s 2021 privacy policy.

 

The tribunal had earlier stayed part of the CCI order that imposed a five-year ban on the company’s data-sharing practices in India.

 

On Thursday, Meta told the appellate tribunal that user data collected from WhatsApp was its private property, used to enhance the platform’s technology.

 

“By leveraging user data from WhatsApp, Meta can enhance its technology. It’s collected by me, it’s my personal property. Shall I give it to my competitors?” Meta argued.