Telecom

After Nigeria, MTN is hit with another huge $662,000 fine in Uganda

Friday, 20 November 2015 08:26

Another subsidiary of the South African telecom group MTN was just penalized for violating the regulation of a country where it operates. After Nigeria where it received a $5.2 billion fine, MTN received a new slap in Uganda at the beginning of November 2015. The Ugandan subsidiary of the telecom company is accused of unfair business practice, anti-competitive behavior, and has been asked to pay a $662,000 indemnity fine to EzeeMoney.

The verdict was pronounced by Uganda’s commercial court which was addressing a complaint filed by EzeeMoney, accusing MTN of sabotaging its mobile money business and failing to comply to the duties to it imposed in the 53 (1) and 56 acts of communication law. According to the Justice, MTN and EzeeMoney were partners. However, MTN cancelled the partnership claiming that EzeeMoney was a direct competitor to its own mobile money business.

Chris Maroleng, MTN’s spokesman said MTN Uganda “appealed the judgment and the question had not yet been dismissed”. During its audition, MTN affirmed it had put an end to its partnership with EzeeMoney because the firm had no exploitation licence. MTN’s Ugandan subsidiary therefore asked the case dismissed to its favor.

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