The COMESA Competition Commission has launched an investigation into Airtel Mobile Commerce BV and MTN Group for allegedly misleading customers about transaction fees and failing to disclose foreign currency exchange rates for cross-border transfers in multiple markets.
The COMESA Competition Commission says it has evidence that Airtel and MTN failed to disclose foreign currency exchange rates for cross-border transfers, potentially leaving customers out of pocket.
The commission alleges that Airtel’s mobile money services in Uganda, Kenya, and Malawi did not provide customers with the full cost of transactions, including forex charges, before confirming payments.
In some cases, the exchange rate displayed to users differed from the rate applied to transactions, the commission says.
MTN Mobile Money Uganda Limited is also accused of displaying different amounts to senders and recipients in international money transfers.
The commission’s investigation will determine whether Airtel and MTN breached regional anti-trust laws. If found guilty, the two companies could face fines or other penalties.
The investigation is a significant development in the rapidly growing mobile money sector in Uganda, where millions of people rely on the services to send and receive money.
The COMESA Competition Commission is responsible for promoting competition and protecting consumers in the 21-member Common Market for Eastern and Southern Africa (COMESA) region.
Airtel, MTN Uganda under investigation over ‘hidden’ mobile money charges
