The COMESA Competition Commission is currently investigating Airtel Mobile Commerce BV and MTN Group for allegedly misleading customers regarding transaction fees and failing to disclose foreign currency exchange rates for cross-border transfers across various markets. Airtel is facing scrutiny for potential violations of consumer protection laws in Kenya, Uganda, and Malawi, while MTN Group is under similar allegations in Uganda.
Payment platforms within the COMESA region, consisting of 21 African countries, are required to disclose the complete costs of transactions, including forex charges, before finalizing any payment. This regulation is designed to safeguard consumers by ensuring transparency in money transfer fees.
The Commission highlighted discrepancies in charges displayed by Airtel Mobile Money Kenya to senders before confirming transactions, where the actual charges in the final confirmation message were different. Additionally, details of intermediary parties and the exchange rate used were not disclosed to consumers, raising concerns about transparency.
In Malawi, Airtel Mobile Commerce Malawi Limited is accused of failing to provide transaction details such as sender information, fees charged, and intermediary parties, which goes against the anti-trust regulations of the bloc that demand transparency from companies operating within the trade area.
The investigations also revealed that Airtel’s mobile money services in Malawi and Uganda did not disclose the exchange rates used in cross-border transfers or the amount in recipients’ currency, further raising transparency issues.
The Commission considers these alleged practices as misleading and unfair to consumers, as they deprive them of essential information needed to make informed decisions. Instances were also noted where the exchange rates displayed to users in Uganda differed from those applied to transactions, with undisclosed information shared with intermediaries involved in the transfer process.
Similarly, MTN Mobile Money Uganda Limited is accused of displaying different amounts to senders compared to what recipients actually received in international money transfers.
While the investigations aim to determine if the telcos violated regional anti-trust laws, they do not currently imply unfair business practices on the part of MTN Group and Airtel.