The COMESA Competition Commission has launched an investigation into Airtel Mobile Commerce B.V. and MTN Group, for failing to disclose information regarding transaction fees and foreign exchange rates for cross-border transfers.
These alleged violations span consumer protection across multiple African markets, particularly in Kenya, Uganda, and Malawi.
Airtel is under investigation for its mobile money operations in these countries. Investigators claim that in some cases, Airtel Mobile Money Kenya displayed charges to the sender before confirming transactions that differed from the actual charges shown in the final confirmation.
Again, details such as the intermediary parties involved and the exchange rate used were reportedly not disclosed. This lack of transparency could mislead consumers and deny them the information they need to make informed decisions about their financial transactions.
In Malawi, Airtel Mobile Commerce Malawi Limited has been accused of withholding key details, such as the sender’s information, transaction charges, and the involvement of intermediary parties.
The commission’s investigation also states that Airtel’s service failed to show the amount in the recipient’s currency or the exchange rate used, further compromising transparency in cross-border money transfers.
Similarly, the investigation into Airtel Uganda revealed discrepancies between the exchange rate displayed to senders and the rate that was actually applied to the transactions.
In addition, the full extent of consumer information shared with intermediaries is not clear. The final confirmation message to senders allegedly did not include the exchange rate used, which could prevent them from verifying important transaction details.
MTN Group’s Mobile Money Uganda operation is also facing allegations of similar issues. The company is accused of showing different amounts to senders and recipients in international money transfers, damaging consumer trust and transparency.
According to the COMESA Competition Commission, these actions may be considered as “misleading and unconscionable” conduct, as they prevent consumers from receiving the necessary information to make informed decisions.
In line with COMESA’s competition regulations, payment platforms operating within its 21-member trade bloc are required to provide full disclosure of all transaction costs, including foreign exchange fees, before confirming any payments.
Although the investigations are ongoing, COMESA has made it clear that at this stage, no conclusions have been drawn regarding whether MTN and Airtel have violated the regulations or engaged in unfair business practices.
The investigation aims to determine if the telecom giants’ actions have breached consumer protection and anti-trust laws under COMESA’s regulations.
