The long-running legal dispute between GovChat and Meta Platforms, the parent company of WhatsApp and Facebook, is continuing, with JSE-listed fintech company Araxi Holdings alleging that the tech giant’s actions led to the collapse of the South African civic engagement platform.
In its latest annual report, Araxi said it remains committed to pursuing the case before the Competition Tribunal, claiming Meta engaged in anti-competitive and predatory conduct. Araxi holds a 35% stake in GovChat.
How the Dispute Began
GovChat launched in 2018 as a WhatsApp-based platform that allowed South Africans to access government information and services through a single communication channel.
The dispute began in 2021 when WhatsApp informed GovChat that it intended to remove the platform from its WhatsApp Business API, alleging repeated breaches of its terms of service.
Meta argued that GovChat’s name could mislead users into believing it was an official government platform and also raised concerns about how user data was collected and managed. The company further claimed that GovChat’s aggregation of multiple government services did not comply with WhatsApp Business API requirements.
GovChat rejected the move and referred the matter to South Africa’s Competition Commission, arguing that Meta was unfairly preventing it from operating on the platform.
Competition Commission Referred the Matter
Following its investigation, the Competition Commission referred Meta to the Competition Tribunal in 2022, alleging abuse of dominance under South Africa’s Competition Act.
The commission argued that removing GovChat from WhatsApp could reduce consumer choice and negatively affect public access to government services delivered through the platform. At the time, GovChat was handling hundreds of thousands of messages, including queries related to social grants and COVID-19 information.
The commission also requested that the tribunal consider imposing the maximum administrative penalty allowed under the Competition Act if Meta is ultimately found to have contravened the law.
Case Still Awaiting Trial
Araxi non-executive chairman Michael Pimstein said the company looks forward to presenting its case before the Competition Tribunal, alleging that Meta abused its dominant position in the market.
Meta has declined to comment on the matter, citing its policy of not discussing ongoing legal proceedings.
The case remains in the pre-trial stage, with procedural matters still being addressed. A date for the main Competition Tribunal hearing has not yet been announced.
The allegations against Meta remain contested and have not yet been determined by the Competition Tribunal.
Main Image: Connecting Africa
