COMESA Investigates Airtel and MTN for Alleged Misleading Transaction Fees

Reese Morgan

Reese Morgan

February 03, 2025 · 3 min read
COMESA Investigates Airtel and MTN for Alleged Misleading Transaction Fees

The COMESA Competition Commission has launched an investigation into Airtel Mobile Commerce BV and MTN Group, accusing the two telcos of misleading customers about transaction fees and failing to disclose foreign currency exchange rates for cross-border transfers in multiple markets.

Airtel is under scrutiny for violating consumer protection laws in Kenya, Uganda, and Malawi, while MTN Group faces similar allegations in Uganda. According to the commission, payment platforms operating within the COMESA region – a bloc of 21 African countries – must disclose the full cost of transactions, including forex charges, before confirming any payment. This requirement aims to promote transparency in money transfer fees and protect consumers.

In Kenya, the commission has accused Airtel Mobile Money Kenya of displaying different charges to senders before confirming transactions, which differ from the actual charges indicated in the final confirmation message. Additionally, the exchange rate used and details of intermediary parties are not disclosed to consumers. Similar allegations have been made against Airtel Mobile Commerce Malawi Limited, which is accused of failing to disclose transaction details, including sender information, fees charged, and intermediary parties.

In Uganda, Airtel's mobile money services allegedly did not provide senders with the exchange rate used in cross-border transfers and the amount in recipients' currency. Furthermore, the operator did not reveal the extent of consumer information shared with intermediaries involved in the transfer process. MTN Mobile Money Uganda Limited is also under investigation for displaying different amounts to senders and recipients in international money transfers.

The commission has deemed these alleged conducts as "misleading and unconscionable," as they deny consumers the right to material information required to make informed decisions. While the investigations will establish whether the telcos breached regional anti-trust laws, they do not, at this point, imply unfair business practices on the part of MTN Group and Airtel.

The investigation highlights the importance of transparency in financial transactions, particularly in cross-border transfers. It also underscores the need for regulatory bodies to ensure that companies operating within their jurisdictions adhere to consumer protection laws and regulations. As the investigation unfolds, it will be crucial to monitor its outcome and any potential implications for the fintech industry in Africa.

The COMESA Competition Commission's investigation serves as a reminder to fintech companies operating in Africa to prioritize transparency and consumer protection in their business practices. As the region continues to grow as a hub for fintech innovation, it is essential that companies adhere to regulatory requirements and prioritize the interests of their customers.

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