MTN Uganda to pay a sum of Shs 2.3bn
(about $662,000) which is about N190 million
in damages to EzeeMoney Limited for sabotaging
its business. It all started when EzeeMoney,
which runs an e-money business, obtained a
contract from MTN for the provision of digital
transmission [E1] and 30 fixed telephone lines
to carry out its mobile money business.
After agreeing to the terms of the contract,
EzeeMoney then contracted Yo! Uganda Limited
(YUL) to implement the service after Uganda
Communications Commission, the regulator,
approved it on December 2012, to use the 7711
short code to enable its customers to subscribe
for e-money services. However in 2013, MTN after
doing a review of the contract, canceled it, saying
EzeeMoney was a direct competitor to its mobile
money business.
Through AF Mpanga and company advocates,
EzeeMoney went to court, saying MTN’s action
“restricted and distorted competition.” EzeeMoney
said MTN also damaged its ties with YUL and
deprived it of services of other telecommunications
operators. It argued that MTN used its exclusivity
agreements to stop its agents from working for
any other firm with similar business, further
limiting competition.
Delivering judgement in a suit filed by Ezeemoney
limited on November 6th, the presiding judge,
Justice Henry Peter Adonyo ordered MTN to
stop acting in an unlawful and anti-competitive manner,
which denies other businesses an opportunity to prosper.
Justice Adonyo said MTN should pay Shs 800m to
EzeeMoney in general damages for loss of business.
He also directed the telecommunications company to
pay a penalty of Shs 1.5bn in punitive damages
to deter not only MTN but also warn other
companies against uncompetitive business tactics.
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