The Common Market for Eastern and Southern Africa Competition Commission has launched an investigation into Airtel Mobile Commerce BV and MTN Group over allegations of misleading customers about transaction fees and failing to disclose foreign exchange rates for cross-border money transfers.
The probe focuses on Airtel’s operations in Kenya, Uganda, and Malawi, while MTN Group faces similar scrutiny in Uganda. The allegations suggest that customers were not provided with full transaction costs before completing payments.
COMESA, a 21-member regional bloc, mandates that payment platforms disclose all charges, including foreign exchange fees, before finalizing transactions. This regulation is meant to protect consumers by ensuring transparency in financial services. However, Airtel is accused of displaying different charges to senders before and after transactions, as well as failing to disclose intermediary parties involved in the transfer process.
In Malawi, Airtel Mobile Commerce Malawi Limited allegedly did not provide sender information, transaction fees, and intermediary details, a violation of the bloc’s consumer protection regulations. Similarly, Airtel’s mobile money services in Uganda and Malawi reportedly failed to show the exchange rate used in cross-border transfers, leaving senders without crucial details on the amount received by recipients.
MTN Mobile Money Uganda Limited is also under scrutiny for allegedly displaying different amounts to senders and recipients in international transactions. Additionally, COMESA’s findings indicate that in some cases, the exchange rates shown to users in Uganda did not match those applied to transactions. The commission also raised concerns about the extent of consumer data shared with third-party intermediaries.
While the investigation aims to determine whether the telecom firms violated anti-trust laws, COMESA clarified that the probe does not, at this stage, imply wrongdoing by Airtel and MTN. However, if found guilty, the companies could face penalties for breaching regional consumer protection standards.