India’s Competition Council Now Has Facebook–WhatsApp Deal In the Crosshairs

India’s Competition Commission of India (CCI) is soon expected to initiate an investigation into the WhatsApp’s acquisition by Facebook.

Facebook might have famously paid US$ 19 Billion to acquire internet based mobile instant messaging platform WhatsApp, but the deal is nowhere near culmination. The companies will have to get a clearance from numerous Governmental bodies across the world, including India’s CCI before WhatsApp is formally inducted within the Facebook family.

Why is CCI expected to initiate a probe? CCI usually probes cases where there is probable cause that indicates companies are restoring to anti–competitive behavior to unjustly promote their own business, while stifling others.  The fair trade regulator has just initiated an investigation against Google who was accused by multiple parties of pushing down their names in search results, to promote those who had purchased Google’s AdWords, a product that allows bidding for specific keywords entered by visitors to the Search Engine. Google is currently facing an impending fine of up to US$ 5 Billion if found guilty.

While the cause is quite apparent in case of Google, it is still not clear why exactly CCI is interested in the Facebook–WhatsApp deal. Agreed, that WhatsApp has the highest number of subscribers as compared to any telecom subscriber. Moreover, the platform has more than double the number of users as compared to the largest telecom subscriber in India.

However, WhatsApp has strongly stayed away from advertising. Additionally, Facebook has clarified that it won’t initiate Advertising on the platform anytime soon as it wants to honor the commitiment of the WhatsApp’s founders.

It is interesting to note that BitCoin, a virtual currency that recently engulfed the entire world, hasn’t been accorded any official recognition within the country, but was being actively considered to be taxed by the Income Tax Dept. Despite the lack of certainty over the policies regarding such companies and segments, the Govt. is very interested in earning or penalizing them. What do you think?

Source | iamwire

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