BTA2023 The COMESA Competition Commission has launched investigations into Airtel Mobile Commerce BV and MTN Group over allegations of misleading customers regarding transaction fees and the failure to disclose foreign currency exchange rates for cross-border money transfers in several markets across Africa.
Airtel is facing scrutiny for potential violations of consumer protection laws in Kenya, Uganda, and Malawi. MTN Group, on the other hand, is under investigation for similar concerns in Uganda. Payment platforms operating in the COMESA region—a trade bloc of 21 African countries—are required to fully disclose the cost of transactions, including any foreign exchange charges, before confirming payments. This regulation is designed to protect consumers by ensuring transparency in money transfer fees.
Airtel’s Alleged Violations in Multiple Markets
In Kenya, the COMESA Competition Commission highlighted that Airtel Mobile Money Kenya displayed transaction fees to senders that were different from the final charges, and did not disclose details about intermediary parties or the exchange rate used in cross-border transfers. In Malawi, the commission accused Airtel Mobile Commerce Malawi Limited of failing to provide full transaction details, including sender information, fees charged, and intermediary parties involved. The alleged omissions breach COMESA’s anti-trust regulations, which require transparency from companies operating within the region.
Airtel’s services in Uganda and Malawi also came under fire for not disclosing exchange rates used in cross-border transfers or the final amounts in recipients’ currency. The commission noted that this lack of transparency could prevent consumers from making informed decisions.
MTN’s Alleged Misleading Practices in Uganda
Similarly, MTN Mobile Money Uganda Limited is accused of displaying different amounts to senders and recipients for international money transfers. The investigation aims to determine if the discrepancies are due to misleading practices or issues with the system’s transparency.
COMESA’s Stance on the Issue
The COMESA Competition Commission stated that the alleged actions by both companies could be considered misleading and unconscionable, as they deprive consumers of essential information needed to make informed decisions regarding their transactions. However, the ongoing investigations have yet to establish whether these actions breach regional anti-trust laws, and no conclusions have been made about unfair business practices by either Airtel or MTN.
This investigation underscores the importance of transparency in cross-border payment systems within the COMESA region and aims to ensure that mobile money services operate fairly and within the established consumer protection guidelines.
