The COMESA Competition Commission (CCC) has launched an investigation into Airtel Mobile Commerce BV and MTN Group over allegations of misleading customers regarding transaction fees and foreign currency exchange rates in cross-border money transfers. The inquiry focuses on compliance with consumer protection laws in multiple African markets.
Airtel is being scrutinized for potential violations in Kenya, Uganda, and Malawi, while MTN Group faces similar allegations in Uganda. The investigation seeks to determine whether these telecom giants failed to disclose the true costs of transactions, potentially breaching COMESA’s regional competition and consumer protection regulations.
COMESA, a 21-member regional trade bloc, mandates that payment platforms fully disclose all transaction costs, including foreign exchange charges, before users confirm payments. This regulation aims to ensure pricing transparency in mobile money transfers across member countries. “In the case of Airtel Mobile Money Kenya, the charges displayed to the sender before confirming the transaction are, in some instances, different from the actual charges indicated in the final confirmation message. Additionally, details of intermediary parties and the exchange rate applied are not disclosed to consumers,” the commission stated in a notice.
In Malawi, Airtel Mobile Commerce Malawi Limited is accused of failing to disclose key transaction details, including sender information, fees charged, and intermediary parties involved. These omissions reportedly violate COMESA’s antitrust regulations, which require businesses to operate with full transparency in financial transactions. According to COMESA’s preliminary findings, Airtel’s mobile money services in Malawi and Uganda failed to provide senders with the exchange rate applied to cross-border transfers and the final amount in the recipient’s currency.
The COMESA Competition Commission has labeled these alleged practices as misleading and exploitative, arguing that they deny consumers access to essential information needed to make informed financial decisions. In some cases, the exchange rates displayed to users in Uganda reportedly differed from the actual rates applied during transactions. Additionally, Airtel allegedly failed to inform users about how much of their personal data was shared with intermediary service providers.
MTN Mobile Money Uganda Limited is also under investigation for similar practices. The commission claims that MTN displayed different amounts to senders and recipients, leading to discrepancies in international money transfers.
While the investigation does not automatically imply wrongdoing, it aims to determine whether Airtel and MTN violated COMESA’s competition and consumer protection laws. If found guilty, the companies could face regulatory penalties or be required to revise their transaction disclosure policies to align with regional transparency standards.
As the probe unfolds, stakeholders across the fintech and telecom sectors are closely monitoring the outcome, given its potential implications for mobile money services in Africa.
