The COMESA Competition Commission is probing mobile money services of regional telecom operators Airtel and MTN for misrepresenting crucial information on incurred transaction charges.
- •In Kenya, Airtel Money’s transaction charges for customers before sending money were different from the charges indicated in the final confirmation message.
- •Details of intermediary parties and the exchange rate used when making cross-border transactions using the mobile money service were not disclosed to the customers.
- •According to COMESA, these actions in Kenya, Uganda, and Malawi violated the region’s regulations prohibiting companies from misleading a customer using false representations.
“The alleged conduct is considered misleading and unconscionable as it denies consumers the right to material information required to make informed decisions,” the commission stated.
Interested stakeholders and affected customers will make representations before the commission on 28th February. The notice for investigation strictly maintains that the allegations are yet to ascertain if Airtel engaged in unfair business practices – adding that investigations are ongoing.
On the other hand, MTN Mobile Money in Uganda is also under investigation for displaying differing charges for its customers when making transactions. In some cases, it is alleged that the sender’s information is not even revealed to the recipient of the money. The telecom’s hearing before the competition commission will also be held on 28th February.
In February 2024, COMESA commenced an investigation into Airtel’s partnership agreement with the American Tower Corporation (ATC). The telecom was set to use ATC’s sites in Nigeria, Kenya, Niger, and Uganda to support its network reach.
COMESA pointed out that Airtel’s actions were anti-competitive as they denied other telecom operators from accessing ATC’s sites.
