The COMESA Competition Commission (CCC) has initiated an investigation into Airtel Mobile Commerce B.V., citing potential breaches of Articles 27 and 28 of the COMESA Competition Regulations. The probe focuses on the company’s international money transfer (IMT) services across multiple African markets.
The Commission’s preliminary findings suggest that Airtel Mobile Commerce may have engaged in misleading practices, denying consumers full transparency in their transactions. Specifically, the CCC highlights concerns regarding the final confirmation messages sent to recipients, which may not disclose crucial details, including exchange rates and intermediary charges.
According to the Commission, in the case of Airtel Mobile Money Kenya, “the charges displayed to the sender at the point of initiation do not include details of the intermediary parties, as well as the final charges applicable to consumers.” Similar concerns were raised in Uganda, where exchange rate discrepancies were observed between what was presented to users and the actual rates applied.
The CCC emphasized that these alleged practices may amount to violations under Article 27, which prohibits businesses from providing false or misleading information to consumers. Furthermore, Article 28 forbids companies from engaging in transactions deemed “in all circumstances, unconscionable.”
“The alleged conduct is considered misleading and unconscionable as it denies consumers the right to material information required to make informed decisions,” the Commission stated.
The regulator has invited stakeholders, including affected consumers and competitors, to submit their comments and representations by February 28, 2025.
While the commencement of the investigation does not presuppose wrongdoing, the CCC is expected to determine whether Airtel Mobile Commerce’s practices violate competition and consumer protection laws across the region.
Airtel Mobile Commerce has yet to respond to the allegations.
