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Tag: Competition Commission of India (CCI)

  • CCI Approves Torrent Pharma’s Acquisition of Stake in JB Chemicals

    The proposed purchase of a portion of JB Chemicals and Pharmaceuticals by Torrent Pharmaceuticals Ltd. was approved by fair trade regulator CCI on 21 October, contingent on voluntary changes made by the parties. The move followed Torrent Pharmaceuticals’ announcement in June of this year that it would pay INR 19,500 crore to acquire the bulk of JB Chemicals and Pharmaceuticals.

    In a statement, the regulator stated that the proposed combination is related to the acquisition of shares in JB Chemicals & Pharmaceuticals Ltd (target) by Torrent Pharmaceuticals Ltd (acquirer) and the subsequent merger of the target and the acquirer. Torrent Pharmaceuticals would be the second-most valuable pharmaceutical business in India if the deal is finalised.

    Second Largest Deal in India’s Pharma Sector

    Following Sun Pharmaceutical Industries’ 2015 acquisition of Ranbaxy Laboratories, this will be the second-biggest deal in the pharmaceutical industry history. JB Pharma will combine with Torrent following the acquisition of shares. For roughly INR 11,917 crore, Torrent announced in June that it would buy a 46.39% interest from promoters Tau Investment Holdings Pte Ltd, a division of the international investment group KKR.

    Additionally, it would pay about INR 719 crore to purchase an additional 2.80% from specific JB Chemicals employees. Following this, it would make an open offer to purchase a 26% interest for INR 6,842.8 crore in accordance with Sebi’s listing requirements. The primary business of the Torrent group, Torrent Pharmaceuticals, manufactures and markets pharmaceutical formulations (FDFs) for a variety of therapeutic areas. In addition to producing and selling a wide variety of FDFs and active pharmaceutical ingredients (APIs), JB Chemicals and Pharmaceuticals also offers contract development and manufacturing organisation (CDMO) services.

    In a post on X, the competition watchdog stated that the commission has approved Torrent Pharmaceuticals Ltd.’s acquisition of JB Chemicals & Pharmaceuticals Ltd. with voluntary changes. The Commission approved the proposed merger, the regulator added, provided that the parties (Torrent Pharmaceuticals Ltd. and JB Chemicals & Pharmaceuticals Ltd.) complied with the voluntary changes they presented.

    Financial Dynamics of Torrent Pharma & JB Chemicals & Pharmaceuticals

    KKR acquired a 65% share in JB Chemicals & Pharmaceuticals in 2020. Through open market transactions, KKR sold a 5.8% share in JB Pharma in March of this year for INR 1,460 crore. The cornerstone business of the Torrent Group, which generates INR 45,000 crore in total revenue annually, is Torrent Pharma, which generates around INR 11,500 crore. In an all-stock deal valued at USD 4 billion, including USD 800 million in debt, Sun Pharma announced in April 2014 that it will buy ailing rival Ranbaxy.

    A year later, in March 2015, the merger was “consummated” once the necessary permissions were obtained. The acquisition of Bharat Serums and Vaccines by Mankind Pharma last year for INR 13,768 crore was another significant deal. In a different announcement, CCI authorised Setu AIF Trust, Konark Trust, and MMPL Trust to purchase a portion of Edelweiss Asset Management Ltd and Edelweiss Trusteeship Company Ltd.

    According to the watchdog, Setu AIF Trust, Konark Trust, and MMPL Trust will acquire up to 15% of the shares in Edelweiss Asset Management Ltd (EAML) and Edelweiss Trusteeship Company Ltd (ETCL) as a result of the proposed combination’s interrelated processes. Setu AIF Trust is an alternative investment fund (AIF) that is registered with SEBI. Through MMPL, its investment manager, it takes action. ETCL serves as the trustee for Edelweiss Mutual Fund (EMF), while EAML manages the fund’s assets.

    Quick Shots

    •CCI
    approves Torrent Pharmaceuticals’ acquisition of a stake in JB Chemicals
    & Pharmaceuticals on 21 October 2025.

    •Total
    deal expected to cost INR 19,500 crore, making it the second-largest pharma
    deal in India after Sun Pharma-Ranbaxy.

    •After
    acquisition, Torrent Pharma becomes the second-most valuable pharmaceutical
    company in India.

    •Torrent Pharma manufactures
    formulations (FDFs); JB Chemicals produces FDFs, APIs, and CDMO services.

     

  • Madhvani Group’s INSCO Assumes Full Control of HNGIL Following Successful IBC Resolution

    Hindustan National Glass & Industries Limited (HNGIL), India’s former largest container glass manufacturer, has been formally acquired by Independent Sugar Corporation Limited (INSCO), a division of the Madhvani Group, based in Uganda, under the Insolvency and Bankruptcy Code (IBC) process.

    INSCO was able to acquire complete control of HNGIL after the official takeover was documented at a board meeting of the newly formed leadership on 26 September. The International Finance Corporation (IFC) and Cerberus Capital Management provided financial support for the transaction, which was spearheaded by businessmen Kamlesh and Shrai Madhvani.

    After the newly established board of HNGIL publicly documented the transition in a meeting on September 26, INSCO took complete control of the company.

    INSCO Received Approval from NCLT

    In addition to regulatory permissions from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI), the INR 2,250 crore Resolution Plan had already received approval from the National Company Law Tribunal (NCLT) on August 14, 2025.

    A 45-day monitoring (transition) phase after NCLT approval made sure that everything went smoothly before the new board took over, which marked the beginning of HNGIL’s rebirth. After seven years of litigation since the start of the Corporate Insolvency Resolution Process (CIRP) in October 2021, this historic deal brings an end to one of India’s most well-known insolvency cases. With a 96.16% majority vote, the Committee of Creditors (CoC) decisively accepted INSCO’s Resolution Plan, demonstrating the group’s robust turnaround approach.

    What is INSCO’s Resolution Plan?

    In accordance with the arrangement, INSCO will pay INR 1,901.55 crore in cash up front to workers, operational creditors, and financial creditors. Additionally, a deferred payment of INR 356.28 crore over three years would be made. Consenting financial creditors have also been given 5% of the stock. The NCLT emphasised that 60% of acknowledged claims will be recouped by creditors, and that the plan represented 72% of HNGIL’s Average Fair Value and 114% of its Average Liquidation Value.

    The chairman of HNGIL’s new board, Shrai Madhvani, underlined the role that the company’s employees play in its rebirth. According to him, the brand is adamant that workers are the cornerstone of any successful turnaround. The committed employees of HNGIL have demonstrated incredible fortitude throughout the insolvency phase, and the organisation is dedicated to collaborating closely with them to create a safe, secure, and sustainable future for the business.

    He went on to say that the cooperation of workers, clients, suppliers, regulators, and the federal and state governments will be necessary for HNGIL to be revived. “Our vision is not only to restore HNGIL to its former glory but also to align our efforts with the ‘Viksit Bharat’ vision of Prime Minister Narendra Modi, contributing to India’s growth ambitions as a global industrial powerhouse,” he stated.

    Quick
    Shots

    •The new board took charge on
    September 26, marking the formal transition and revival of the company.

    •The INR 2,250 crore resolution plan
    received approvals from NCLT, RBI, and CCI, and was backed by IFC and
    Cerberus Capital.

    •CoC approved the plan with a 96.16%
    majority, ending a 7-year-long insolvency battle that began in October 2021.

    •Creditors will recover 60% of
    acknowledged claims, with the plan value at 72% of fair value and 114% of
    liquidation value.

  • Google Takes CCI to Supreme Court Over INR 216.69 Cr Fine on Play Store Billing Policy

    The Competition Commission of India’s (CCI) antitrust verdict against Google over its Play Store policy was partially supported by the National Company Law Appellate Tribunal’s (NCLAT) March ruling, which Google has challenged in the Supreme Court. “We have appealed the NCLAT’s recent ruling regarding the order from the CCI.

    “We’re still dedicated to helping the Indian app market expand for developers and users alike,” a Google representative told Moneycontrol. The NCLAT’s March ruling maintained a number of the CCI’s order’s main conclusions, although it lowered Google’s fine from INR 936.44 crore to INR 216.69 crore.

    Background: CCI’s Investigation Into Play Store Billing

    CCI opened an investigation into Google in November 2020 in response to complaints about the company’s requirement that in-app purchases and paid apps use the Play Store payment system. Developers were compelled by this scheme to pay a commission, typically 15–30%, and use Google’s own payment mechanism. Google was found guilty of abusing its Play Store dominance.

    Key Findings of CCI and NCLAT

    The watchdog also ordered the company to modify its app payment system and issued a cease-and-desist injunction in addition to the monetary penalty. The NCLAT confirmed CCI’s conclusion in its March 2025 ruling that Google forced app developers to adopt the Google Play Billing System (GPBS) for in-app purchases and paid app sales, thereby imposing unfair and discriminatory conditions on them.

    It also concurred with CCI’s finding that Google promoted its own payment app, Google Pay, over other UPI-based digital payment apps by abusing its control over the Android and Play Store ecosystems.

    Implications for Developers and Digital Payments

    In a March 2025 ruling, the appellate tribunal overturned the watchdog’s rulings limiting innovation and denying market access. It highlighted Google billing services having less than 1% of the UPI market share and the lack of proof of restrictions on technical advancement as justifications for rescinding the specific instruction.

    Remarkably, the NCLAT subsequently allegedly reversed a number of “ex-ante” (preventive) directives that the CCI had given Google, claiming that the order went beyond the CCI’s authority under the existing regulatory structure.

    Two months later, on May 1, the NCLAT reinstituted two directives that mandate Google to reveal its data rules and refrain from using its billing data to gain an unfair competitive edge. Dissatisfied with the appellate tribunal’s partial relief and the clarification’s subsequent setback, Google has now petitioned the SC to contest the order and wants a favourable ruling.

  • To Obtain Additional 10% Stake in Tata Play, Tata Sons Seeking Approval from CCI

    According to reports, Tata Sons has applied for permission from the Competition Commission of India (CCI) to purchase an additional 10% of DTH provider Tata Play from Temasek Holdings, a Singaporean sovereign wealth fund. According to multiple sources, which cite a notification sent to the CCI earlier this week, the proposed deal is the purchase of a 10% stake in Tata Play by Tata Sons from Baytree Investments (Mauritius) Pte Ltd. It should be noted that Temasek Holdings owns Baytree Investments (Mauritius).

    Players Fighting Fierce Battle in Digital TV Sector

    In April 2024, when the firm was valued at $1 billion, Temasek Holdings Pte sold its 10% share in Tata Play for INR 835 Cr ($100 million), giving Tata Sons a 70% stake in the company today. Walt Disney owns the remaining 30%, but after simplifying its portfolio and combining its media businesses with Reliance Jio in India, the company has been looking to leave the TV distribution industry. According to earlier reports, telecom giant Bharti Airtel was in advanced negotiations with the Tata Group in October of last year to buy Tata Play. This move would have strengthened Airtel’s position in the faltering digital TV market and improved its bundled offerings, ultimately increasing non-mobile revenues through convergence.

    TATA Expanding its Network in Entertainment Space

    The aforementioned development happened one month after it was reported that Tata Sons intended to invest in its digital division, Tata Digital, by the middle of 2025. A few weeks ago, the competition authority granted approval to Tata Electronics Private Limited’s (TEPL) plan to purchase the majority of Pegatron Technology India. The CCI also gave its approval to Tata Electronics’ proposal to give Pegatron India full ownership of TEL Components, a TEPL subsidiary.

    One of the main content distribution platforms in India is Tata Play (previously Tata Sky), which offers Pay TV and over-the-top (OTT) services via its Tata Play Binge platform. The parties (Tata Sons and Tata Play) claimed in their submission to the CCI for evaluation of the proposed transaction that it would not have a negative impact on competition in any conceivable relevant markets.

    As a result, the definition of the relevant market may stay open, and the CCI may evaluate the deal in light of India’s wired broadband internet services as well as the complementary relationship between web-based services like Tata Play Binge and internet access offered by Tata Sons through its affiliates, the statement continued. Based on Tata Sons’ application to the CCI, is it feasible that the company has chosen to keep the internet piece of Tata Play while letting go of the distribution platform operator’s video services section.

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  • NCLAT Acknowledges WhatsApp and Meta’s Argument Against CCI’s Penalty

    The appeals submitted by Meta Platforms and WhatsApp against an order issued by the Competition Commission of India (CCI), a fair trade regulator, that imposed a penalty of INR 213.14 crore for abusing market dominance were admitted by the appellate panel NCLAT on 16 January. A two-member bench of the National Company Law Appellate Tribunal (NCLAT) stated that the matter needs to be taken into account after hearing Meta and CCI’s initial statements. “We conclude that consideration should be given to the submission made by the parties. The NCLAT bench, which included Justice Ashok Bhushan as its chair, declared that it accepted both appeals. However, NCLAT stated that it will make a decision next week regarding the temporary respite to maintain the CCI order. The attorneys representing WhatsApp and Meta Platform asked the appellate tribunal to halt the CCI order during the hearings. The attorney representing the Competition Commission of India, however, disagreed.

    What was the issue?

    The CCI fined social media giant Meta INR 213.14 crore on November 18 for using unfair business practices in connection with the 2021 WhatsApp privacy policy modification. The NCLAT, which has appellate jurisdiction over CCI orders, has received challenges to this order from Meta Platforms and WhatsApp. Speaking on behalf of Meta and WhatsApp, Senior Advocates Kapil Sibal and Mukul Rohatgi argued that the CCI had overreached itself in making a decision about WhatsApp’s privacy policy while the case was still pending before a Supreme Court Constitution Bench.

    The entity’s privacy policy now includes CCI. It is in front of five Supreme Court judges. According to him, it lacks the authority to handle it. Furthermore, there isn’t a complaint in this instance, and CCI reached an “erroneous conclusion” regarding dominance without considering the “effect analysis” of that. According to Sibal, “Without an effect analysis, you cannot come to the conclusion,” and the CCI hasn’t even looked at the specific data being shared. Additionally, he said that CCI had prohibited WhatsApp from using data gathered on its platform for advertising reasons with other Meta firms or Meta company goods for five years and that “they are trying to destroy the business model.”

    Monetisation is the Key to Any Business

    Sibal went on to say that no software can thrive without generating revenue, noting that comparable platforms like Signal and Telegram have their own revenue schemes. Additionally, search applications make money in different ways. Additionally, he requested an emergency stay on the CCI order, which was due on February 19. According to Sibal, NCALT can take up the issue and make a decision after the Supreme Court rules on the privacy policy and the legislative regulations are established. “Moreover, the balance of convenience is in our favour, as we have been operating this for years,” he continued.

    WhatsApp spokesperson Mukul Rohatgi stated that everyone can use the app for free and that no one is being charged for sending “Good Morning to Good Night” messages that include videos. How is it possible for anyone to live on a free model? This sharing isn’t ominous. This is merely a business plan. These days, Facebook and WhatsApp are owned by the same company. He claimed that this type of sharing is harmless and not destructive. On behalf of the CCI, attorney Samar Bansal, however, disagreed with these claims, arguing that the CCI’s investigation and the Supreme Court case did not overlap. In response to a bench question, he stated that competition law examines commercial data, whereas data privacy law exclusively examines personal data.

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  • Meta Fears an Antitrust Verdict in India May Require Features to be Rolled Back

    According to a court petition by the U.S. company, Meta may have to “roll back or pause” some functionalities in India because of an antitrust injunction that prohibited its WhatsApp messaging service from sharing user data with Meta for advertising purposes. The Competition Commission of India’s (CCI) November ruling, which ruled that the firm exploited its power and “coerced” WhatsApp users into agreeing to a 2021 privacy policy that allegedly increased user data collecting and sharing and gave it an unfair edge over competitors, is being challenged by Meta.

    In India, Meta’s largest market, where there are over 350 million Facebook users and over 500 million WhatsApp users, the CCI has fined the company $24.5 million and banned it from exchanging data for five years. Although Meta has publicly defended its policy change and stated that it disagrees with the CCI order, the U.S. corporation is clearly uneasy about the CCI’s decision, as evidenced by its appeal file, which takes a critical stance on the watchdog’s operations.

    Company’s Major Concern

    The business is worried that the prohibition on WhatsApp-to-Meta user data exchange could limit its capacity to provide consumers with customised advertisements on Facebook and Instagram, according to the company’s filing with the Indian appeals panel on January 3.

    WhatsApp claims in public that it gives Meta access to a user’s phone number, transaction history, business interactions, and mobile device data. For the first time, Meta explained the implications of the order in its petition, stating that the data sharing ban may prevent an Indian fashion company from customising Facebook or Instagram advertisements based on their conversation with a WhatsApp user about a particular clothing line.

    According to the business, using the solution in its broadest sense will probably necessitate Meta pausing or reversing a number of features and products. It affects WhatsApp’s and Meta’s capacity to continue operating profitably, albeit it is impossible to pinpoint the precise financial impact on the company. Facebook India Online Services, a registered company that sells advertising inventory in India, claimed $351 million in income in 2023–2024—the most in at least five years.

    Meta’s Worldwide Concerns

    Meta’s worldwide problems are made worse by the antitrust issues in India. WhatsApp was charged in 2021 with breaking EU law by neglecting to provide clear and understandable explanations for policy changes. Later on, it consented to inform EU users of the modifications.

    The Indian case began in 2021 in response to complaints about modifications to WhatsApp’s privacy policies. Meta informed the CCI that the modifications did not increase its capacity for data gathering and exchange, but rather served merely to notify them about the operation of optional business messaging capabilities. According to its November verdict, WhatsApp’s policy lacked an opt-out provision and forced users to accept or risk losing access to the service. The watchdog has mandated that WhatsApp give users the option to choose whether or not to share data with Meta.

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  • Regarding Zomato and Swiggy’s 10-minute Delivery Apps, NRAI Plans to Approach CCI

    The National Restaurant Association of India (NRAI) is expected to petition the Competition Commission of India (CCI) for intervention about the launch of the 10-minute meal delivery standalone apps, Bistro and Snacc, adding to the problems caused by Zomato and Swiggy’s anti-competitive conduct. According to a media story that quotes Sagar Daryani, the founder and CEO of Wow Momo, as well as the president of NRAI, NRAI is seriously considering pursuing legal action against both businesses. Daryani further stated that NRAI is not comfortable with Zomato and Swiggy selling food directly through Blinkit’s Bistro app and Swiggy’s Snacc app for speedy meal delivery, as well as with the two companies allegedly hiding consumer data.

     Daryani further emphasised that although these platforms have access to important customer data, they do not provide restaurant partners with this information. All of our data is at their disposal, yet they choose not to share it with us. There is total consumer masking for us. “Whether it’s data from a tea brand, biryani, or momo, we have no reason to believe they are not migrating our customers to the products they sell as private labels on their apps,” the journal said, quoting Daryani. The NRAI is concerned that Zomato and Swiggy may use this information to entice users to buy their goods via these apps.

    The startup led by Sriharsha Majety launched a new app earlier this week called “SNACC,” which aims to provide a 15-minute meal delivery service in a few areas of Bengaluru. Zomato then introduced its 15-minute meal delivery service. It is important to remember that in addition to being outspoken about its concerns about Zomato and Swiggy‘s business practices, the NRAI is also pursuing two lawsuits against the companies, claiming they have engaged in anti-competitive behaviour. In an effort to create a level playing field and safeguard eateries, delivery partners, and customers from potentially exploitative platform activities, NRAI requested just a day ago that the government provide industry status to the food services sector.

    The food delivery giants were accused by the association of anticompetitive activities in the past, including service bundling, excessive commissions, delayed payment cycles, and the imposition of one-sided terms. According to reports, the CCI discovered a few months ago that foodtech giants Swiggy and Zomato had violated competition regulations by favouring certain eateries through their relationships.

    Why there is a Need of Strict Guidelines

    Based on a complaint submitted by the National Restaurant Association of India (NRAI) in 2021, the CCI had previously investigated both businesses in 2022. This is the main reason why many consumer service and e-commerce businesses are either trying to enter or are already in the rapid commerce market. This trend reflects the shifting preferences of consumers, who now want their purchases delivered quickly. Amazon, Flipkart, JioMart from Reliance, and Tata BBNow are just a few of the companies that have recently entered the market. Better anti-competition policies and procedures are therefore required in order to guarantee these restaurant partners—particularly the smaller ones—fair play.

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  • CCI Establishes a Confidentiality Ring to Accelerate the Apple Antitrust Investigation

    Ahead of the case’s final hearing next year, the Competition Commission of India (CCI) has reportedly decided to put the huge tech giant behind a “confidentiality ring” as part of its stepped-up antitrust investigation into Apple. According to sources cited by a media report, the watchdog consented to establish the “confidentiality ring” last week. Before the CCI begins the lawsuit’s final hearing, the action will allow the giant tech firm to examine sensitive information related to the antitrust case. The regime, which was implemented in 2022, gives parties access to private data or records pertaining to other parties in an investigation so they can better defend themselves. The confidentiality ring aids regulators in quickly resolving complaints, subject to specific riders. Apple and other chosen parties have access to sensitive, private information under the secrecy ring.

    Options Available for Apple

    According to media reports, Apple may be asked to respond to the CCI probe report after information is made available, at which point the hearing will start. In this situation, Apple will have four weeks to provide the information that the watchdog is requesting. The article also stated that Apple and a few other carefully chosen linked businesses will have the opportunity to physically confirm the files and information in the investigative report, and they may even receive a certified copy of those files.

    The move follows rumours that the CCI denied Apple’s plea to halt an antitrust investigation that exposed the massive tech giant’s violations of the nation’s competition laws, which circulated a month ago. Apple had argued in its petition that the non-profit Together We Fight Society (TWFS), the primary complainant, had disregarded the watchdog’s orders to remove previous probe reports. In August, the CCI ordered an extraordinary recall of investigative reports after Apple alleged that the watchdog had given over trade secrets to rivals, including Match, the owner of Tinder, as part of the antitrust inquiry.

    The Commission then instructed the parties to destroy all copies and return the reports. It then released fresh reports. Allegations that Apple was abusing its dominating position in the app marketplace and pressuring developers to utilise its in-app payments system prompted the watchdog to begin its probe against the corporation in 2021.

    Big Tech Companies Face Strict Scanning by CCI

    According to reports earlier this year, the Cupertino-based multinational tech company was found guilty of unfair trading practices and violating competition laws by the CCI internally. It is important to note that the CCI is targeting other large IT companies in addition to Apple. The authority levied two distinct fines against Google in 2022, amounting to more than INR 2,200 Cr, for misusing its market dominance in Android smartphones and for violating Play Store regulations. The social media giant Meta was also fined INR 213.14 Cr by the CCI in November of this year for abusing its power in relation to the 2021 WhatsApp privacy policy modification. Amazon and Walmart-owned Flipkart were later found to have violated competition regulations by favouring specific sellers on their platforms, according to an internal investigation by the Commission.

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  • CCI Authorises Alphabet’s Purchase of Stake in Flipkart, a Walmart subsidiary

    The purchase of a portion of Flipkart, a Walmart group company, by Alphabet affiliate Shoreline International Holdings LLC has been authorised by the Competition Commission of India (CCI). A wholly owned subsidiary of Alphabet Inc., the parent company of Google, Shoreline International will purchase shares in Flipkart.

     According to the CCI, the deal entails an investment in Flipkart Pvt Ltd as well as a contract for particular service provisions between an Alphabet affiliate and Flipkart’s subsidiary. The primary activities of Flipkart, a prominent e-commerce platform, are marketplace-based e-commerce services and wholesale trading. The CCI revealed in a post on X that the Commission had authorised the subscribing of Flipkart Pvt Ltd shares by Shoreline, a subsidiary of Alphabet Inc.

    Flipkart’s Recent Funding

    Google joined Walmart in contributing $350 million as a minority investor in Flipkart’s extended investment round in May. With this investment, the domestic marketplace’s valuation increased to $36 billion, bringing its total capital to $950 million. Google’s financing was meant to help Flipkart expand into new financial and fast commerce enterprises as well as into established major categories like Cleartrip and Shopsy.

    According to Flipkart’s official announcement, Google’s proposed investment and its cloud collaboration will help the company grow and modernise its digital infrastructure so it can serve customers nationwide.  Walmart, the company that controls 85% of Flipkart, strengthened Flipkart’s standing in the market by contributing $600 million to the fundraising effort.

    Streamlining Regulations

    The CCI pointed out that Alphabet’s stake is an “extremely small and non-controlling acquisition of shareholding” and affirmed that Flipkart and Alphabet will continue to function separately.  As stated in its order, the competition watchdog stressed that the focus of its investigation was possible impacts on the cloud services market in India.

    However, CCI stated in the order that if the Hon’ble Commission were to evaluate the impacts on competition, it should only consider the markets that are directly impacted by the proposed merger, specifically the Indian cloud services market.

    Flipkart’s Dominance in the Indian Market

    With the $36 billion investment, Flipkart is the market leader in India’s e-commerce sector, catering to hundreds of millions of customers in smaller cities and villages. According to Bernstein, Flipkart, which also owns the fashion e-commerce company Myntra, controls roughly 48% of the Indian e-commerce market.

    Amazon, Meesho, which is supported by SoftBank, Reliance Retail, and an expanding number of quick-commerce applications, are competitors of Flipkart. The largest retail chain in India is operated by Reliance Retail, which is rapidly trying to develop an e-commerce strategy. It is owned by Mukesh Ambani, the richest man in Asia. Last year, QIA, ADIA, and KKR invested close to $2 billion in Reliance Retail, which was valued at $100 billion. According to Bernstein, India’s e-commerce market is expected to reach a value of $133 billion by the following year.

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  • Due to the WhatsApp policy, CCI Fines Meta

    The Competition Commission of India hit WhatsApp and its parent company Meta with an INR 213.14 crore (roughly USD 25.3 million) fine on 17 November for violating the Competition Act and abusing its dominant position through the 2021 update to WhatsApp’s privacy policy. WhatsApp has been directed by the CCI to refrain from sharing user data for advertising reasons with other Meta firms (like Facebook and Instagram) for a period of five years.

    Additionally, the CCI has prohibited WhatsApp from requiring user data sharing with Meta firms in order to utilise its services in India. WhatsApp’s policy must outline the kind of data that is provided and the reasons behind them when it comes to Meta companies and goods for purposes other than advertising. Users of WhatsApp must be given the option to opt out of data sharing and change their preferences in-app if their data is shared for purposes other than delivering WhatsApp services. All users, including those who approved the 2021 upgrade, must have access to this option.

    Online Network of WhatsApp and Meta Companies

    The CCI claimed in a press release that WhatsApp‘s 2021 policy change, which eliminated the previous opt-out option and required users to agree to the new terms, including data sharing with Meta, was an “unfair condition” under the Competition Act.

    According to the report, all users were forced to “accept expanded data collection terms and sharing of data within Meta Group without any opt-out” as a result of the update. It claimed that the policy update compelled users to comply, weakened their autonomy, and indicated that Meta had exploited its dominating position due to the network effect and a lack of viable alternatives.

    Creating Entry Barriers to Rival Firms

    The CCI further claimed that by exchanging WhatsApp user data amongst Meta businesses for objectives other than delivering WhatsApp services, Meta’s competitors were prevented from entering the market and were denied access to the display ad market. WhatsApp’s 2021 privacy policy modification has drawn criticism worldwide for violating users’ privacy and raising antitrust issues. In August 2024, a Brazilian judge banned WhatsApp from exchanging data with Facebook and Instagram within the nation. According to a Meta representative, they intend to challenge the CCI’s ruling.

    The company intends to appeal the CCI’s ruling because it disagrees with it. As a reminder, the 2021 upgrade was available to users at the time and did not alter the privacy of their private communications. A spokesperson for the company also confirmed that the update did not result in the deletion of any accounts or the loss of WhatsApp functionality.

    In March 2021, CCI launched an inquiry into WhatsApp’s January 2021 upgrade. Because the policy change had been contested in both the Delhi High Court and the Supreme Court, Meta (formerly Facebook) and WhatsApp had petitioned the Delhi High Court to halt this probe.

    WhatsApp’s case was denied by a single-judge panel led by Justice Navin Chawla in April 2021. In August 2022, a division bench consisting of Justice Subramonium Prasad and then Chief Justice Satish Chandra Sharma dismissed the appeal that Meta (formerly Facebook) and WhatsApp had filed against the ruling.

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