EXPOSED: Airtel, MTN Mobile Money Services under Investigation over hidden mobile money fees

The COMESA Competition Commission is investigating Airtel Mobile Commerce BV and MTN Group for allegedly misleading customers about transaction fees and failing to disclose foreign currency exchange rates for cross-border transfers in multiple markets. Airtel is under scrutiny for violating consumer protection laws in Kenya, Uganda, and Malawi, while MTN Group faces similar allegations in Uganda.

Payment platforms operating with the COMESA region–a bloc of 21 African countries–must disclose the full cost of transactions, including forex charges before they confirm any payment. The requirement aims to protect consumers by promoting transparency in money transfer fees.

“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 and details of the intermediary parties, as well as the exchange rate used are not disclosed to consumers,” COMESA Competition Commission said in a notice.

In Malawi, the commission has accused Airtel Mobile Commerce Malawi Limited of failing to disclose transaction details, including sender information, fees charged, and intermediary parties. These alleged omissions violate the bloc’s anti-trust regulations, which mandate transparency from companies operating within the 21-member trade area.

Airtel’s mobile money services in Malawi and Uganda also did not give senders the exchange used in cross-border transfers and the amount in recipients’ currency, COMESA said their findings show.

“The alleged conducts are considered misleading and unconscionable as it denies consumers the right to material information required to make informed decisions,” the commission said.

In some instances, the exchange rate displayed to users in Uganda differed from the rate applied to transactions. The operator did not also reveal the extent of consumer information shared with intermediaries involved in the transfer process.

For its part, MTN Mobile Money Uganda Limited allegedly displayed different amounts to senders what recipients received in international money transfers.

While the investigations will establish whether the telcos breached regional anti-trust laws, they do not, at this point, imply unfair business practices on the part of MTN Group and Airtel.