The Common Market for Eastern and Southern Africa (COMESA) Competition Commission has announced the commencement of an investigation into MTN Group, focusing on its mobile money operations in Uganda. The probe centers on allegations of misleading and unconscionable practices related to MTN’s International Money Transfer (IMT) services, potentially violating key articles of the COMESA Competition Regulations.
The investigation follows preliminary findings suggesting that MTN Mobile Money Uganda Limited, a subsidiary of the MTN Group, may be engaging in practices that harm consumers. Specifically, the Commission is examining claims that the displayed amounts for International Money Transfer transactions differ from the actual amounts sent, that sender details are being withheld from recipients, and that information regarding intermediaries and the sharing of consumer data with them is not being adequately disclosed.
Articles 27 and 28 of the COMESA Competition Regulations, which prohibit misleading or false representations and unconscionable conduct respectively, form the basis of the investigation. The Commission’s notice emphasizes that these alleged practices are considered serious breaches as they deprive consumers of crucial information needed to make informed financial decisions.
While the investigation is underway, the COMESA Competition Commission stressed that the initiation of the inquiry does not automatically imply that MTN has engaged in unfair practices or violated regulations. It is a preliminary step to gather evidence and assess the validity of the allegations.
The Commission is now calling for stakeholders, including affected consumers, to submit any relevant information or representations they may have by February 28, 2025. This call for evidence underscores the Commission’s commitment to a thorough and transparent investigation. Interested parties can contact Mr. Steven Kamukama, Director of Consumer Welfare and Advocacy Division, at the provided contact details for inquiries or submissions. The Commission has assured that all information received will be treated with strict confidentiality and used solely for the purposes of this investigation.
This investigation is a significant development in COMESA’s ongoing efforts to ensure fair competition and protect consumer rights within the region’s rapidly evolving digital financial landscape. The outcome of the investigation could have far-reaching implications for the mobile money sector and its regulatory framework. We will continue to monitor this developing story and provide updates as they become available.
