The COMESA Competition Commission has launched an investigation into Airtel Mobile Commerce BV and MTN Group over allegations of misleading consumers about transaction fees and failing to disclose foreign exchange rates for cross-border money transfers. The probe spans multiple markets, including Kenya, Uganda, and Malawi, where the telecom giants operate mobile money services.
Lack of Transparency Raises Concerns
Under COMESA’s consumer protection laws, mobile payment platforms within the 21-member bloc must provide users with full transaction costs upfront, including foreign exchange charges. However, findings from the commission suggest that both Airtel and MTN failed to meet these transparency requirements.
For Airtel, the charges displayed to users in Kenya before confirming a transaction were, in some cases, different from those in the final confirmation message. Furthermore, details such as exchange rates and intermediary fees were not disclosed, leaving consumers in the dark about the true cost of their transactions.
In Malawi, Airtel Mobile Commerce Malawi Limited is accused of failing to provide critical transaction details, including sender information and fees charged. The commission argues that such omissions violate anti-trust regulations designed to protect consumers from deceptive business practices.
Meanwhile, in Uganda, users reported discrepancies between the exchange rates shown before transactions and those actually applied. Airtel also did not specify how much consumer data was shared with intermediary financial entities.
MTN Also Under Investigation
MTN Mobile Money Uganda Limited is facing similar allegations. According to COMESA, users were shown a different transaction amount before sending money compared to what recipients ultimately received. The investigation aims to determine whether this practice breaches regional anti-trust laws.
Despite the seriousness of the accusations, COMESA has clarified that the ongoing probe does not automatically imply wrongdoing on the part of Airtel and MTN. However, if violations are confirmed, both companies could face regulatory penalties and be required to enhance transparency in their operations.
As digital payments continue to grow across Africa, ensuring fairness and openness in financial transactions remains a priority for regulators. Consumers and industry stakeholders alike will be watching closely as the investigation unfolds.
