Airtel Mobile Commerce B.V. and MTN Group are under investigation by the COMESA Competition Commission for their failure to disclose information on transaction fees and foreign exchange rates for cross-border transfers.
These purported infractions cover consumer protection in several African markets, especially in Malawi, Kenya, and Uganda. Airtel’s mobile money operations in various countries are being investigated.
According to investigators, Airtel Mobile Money Kenya occasionally showed the sender prices that were different from the charges that were actually revealed in the final confirmation before approving transactions.
Once more, information was allegedly withheld, including the exchange rate and the intermediate companies involved. Customers may be misled by this lack of openness and be deprived of the knowledge necessary to make wise financial decisions.
Airtel Mobile Commerce Malawi Limited has been charged in Malawi with concealing important information, including transaction fees, sender data, and the participation of middlemen, BrandSpur telecom and information news reports.
According to the commission’s investigation, Airtel’s service further compromised transparency in cross-border money transfers by failing to display the amount in the recipient’s currency or the exchange rate used.
Similar differences were found between the exchange rate that was applied to the transactions and the rate that senders saw during the Airtel Uganda probe. Furthermore, it’s unclear how much customer data is being shared with middlemen.
The exchange rate utilized was allegedly omitted from the final confirmation message sent to senders, which could have prevented them from confirming crucial transaction information. There are other claims of the same problems with MTN Group’s Mobile Money Uganda program. The business is charged with undermining customer confidence and transparency by allegedly displaying disparate amounts to senders and receivers in international money transactions.
The COMESA Competition Commission claims that because these practices deprive consumers of the knowledge they need to make educated judgments, they may be regarded as “misleading and unconscionable” conduct. Payment platforms operating inside COMESA’s 21-member trade bloc must fully disclose all transaction expenses, including foreign currency fees, before confirming any payments in accordance with the organization’s competition standards.
Despite the fact that the investigations are still underway, COMESA has stated that no conclusions have been reached as of yet about whether MTN and Airtel have broken any laws or engaged in unethical business activities. The investigation’s goal is to ascertain whether the telecom behemoths’ acts violated antitrust and consumer protection legislation under COMESA’s rules.
