Airtel, MTN Face COMESA Probe Over Hidden Mobile Money Charges

Airtel, MTN Face COMESA Probe Over Hidden Mobile Money Charges

The COMESA Competition Commission has launched an investigation into Airtel Mobile Commerce BV and MTN Group over allegations of misleading customers on transaction fees and failing to disclose foreign exchange charges for cross-border transfers. The probe covers multiple markets, with Airtel under scrutiny in Kenya, Uganda, and Malawi, while MTN faces similar allegations in Uganda.

The inquiry follows concerns that mobile money users were being charged amounts different from what was initially displayed, and key details such as exchange rates and intermediary fees—were not disclosed, potentially violating consumer protection laws.

Allegations of Non-Transparent Pricing

According to COMESA, Airtel’s mobile money services in Malawi and Uganda failed to disclose the exchange rates used for cross-border transactions, as well as the final amount received in the recipient’s currency. In Kenya, the charges displayed before a sender confirmed a transaction sometimes differed from the final amount deducted, raising concerns about misleading pricing.

MTN Mobile Money Uganda Limited is also under scrutiny for allegedly displaying different amounts to senders compared to what recipients actually received in international money transfers. The investigation aims to determine whether these discrepancies constitute unfair business practices under regional competition laws.

Regulatory Impact on Mobile Money Services

Mobile money plays a crucial role in financial transactions across Africa, especially in the 21-member COMESA trade bloc, where cross-border transfers are common. COMESA regulations require payment providers to disclose all costs—including forex charges—before confirming transactions.

If the investigation finds Airtel and MTN in violation of these regulations, the case could set a precedent for stronger enforcement of transparency rules in mobile financial services. However, at this stage, the probe does not imply any confirmed wrongdoing by either company.

As regulatory scrutiny increases, mobile money operators may face stricter compliance measures to ensure full disclosure of transaction fees, ultimately shaping the future of digital payments in the region.

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