More troubles for the Mobile telecommunications company as Uganda hammered the firm with a huge fine.

[/quote] MTN Uganda

The commercial court has ordered telecoms giant MTN Uganda to pay the sum of Shs 2.3 billion (about $662,000) in damages to EzeeMoney Limited for sabotaging its business.


Justice Henry Peter Adonyo on November 6, 2015 also 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 800 million to EzeeMoney in general damages for loss of business. It should also pay a penalty of Shs 1.5 billion in punitive damages to deter not only MTN but also warn other companies against uncompetitive business tactics, reported NAN/Reuters in a joint report on Wednesday.

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.

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.


But in 2013, MTN cancelled the contract, 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.

In a January 28, 2013 letter to EzeeMoney, MTN appeared to say its business would be disrupted if the former was given access to its platform.

“EzeeMoney is in direct competition with MTN in the provision of mobile money,” read the letter in part.

Justice Adonyo said the letter confirmed that MTN was stopping services of the company because it considered it a competitor.

“It is testified that when YUL required the defendant (MTN) to activate the plaintiff’s (EzeeMoney) short code on its platform, the defendant declined to do so on the basis that the plaintiff was in direct competition with it,” the judge observed.

“YUL then seeing that the plaintiff couldn’t carry out the business they had agreed together, by a letter dated 7/2/2013, did terminate all services with the plaintiff as YUL did not want to jeopardize its relationship with the defendant.”

The judge also found that MTN coerced its agents to reject EzeeMoney. One witness, Sammy Mwathi, told the court that he was an MTN money agent and he was restricted from dealing with other firms in the same business by signing exclusivity agreement.

The ruling in Uganda came at a time when MTN Group has just suffered a $5.2 billion fine in Nigeria after it failed to disconnect unregistered lines.[quote]

http://www.thisdaylive.com/articles/more-troubles-for-mtn-as-uganda-fines-telco-622-000/226059/

lezz:
More troubles for the Mobile telecommunications company as Uganda hammered the firm with a huge fine. MTN Uganda

The commercial court has ordered telecoms giant MTN Uganda to pay the sum of Shs 2.3 billion (about $662,000) in damages to EzeeMoney Limited for sabotaging its business.


Justice Henry Peter Adonyo on November 6, 2015 also 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 800 million to EzeeMoney in general damages for loss of business. It should also pay a penalty of Shs 1.5 billion in punitive damages to deter not only MTN but also warn other companies against uncompetitive business tactics, reported NAN/Reuters in a joint report on Wednesday.

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.

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.


But in 2013, MTN cancelled the contract, 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.

In a January 28, 2013 letter to EzeeMoney, MTN appeared to say its business would be disrupted if the former was given access to its platform.

“EzeeMoney is in direct competition with MTN in the provision of mobile money,” read the letter in part.

Justice Adonyo said the letter confirmed that MTN was stopping services of the company because it considered it a competitor.

“It is testified that when YUL required the defendant (MTN) to activate the plaintiff’s (EzeeMoney) short code on its platform, the defendant declined to do so on the basis that the plaintiff was in direct competition with it,” the judge observed.

“YUL then seeing that the plaintiff couldn’t carry out the business they had agreed together, by a letter dated 7/2/2013, did terminate all services with the plaintiff as YUL did not want to jeopardize its relationship with the defendant.”

The judge also found that MTN coerced its agents to reject EzeeMoney. One witness, Sammy Mwathi, told the court that he was an MTN money agent and he was restricted from dealing with other firms in the same business by signing exclusivity agreement.

The ruling in Uganda came at a time when MTN Group has just suffered a $5.2 billion fine in Nigeria after it failed to disconnect unregistered lines.

http://www.thisdaylive.com/articles/more-troubles-for-mtn-as-uganda-fines-telco-622-000/226059/

MTN...everywhere u go dem go pay run...

Problems keep popping up for mtn
Seems they have been in involved in lots of short cuts in order to maximize profits

MTN

Empty hen ... It's gonna be a rusty xmas


Nah costumer and staff go suffer am pass

Ok. MTN wetin? Have gone there to do the undoable?

oh boy. MTN is in trouble

MRLINGTON:



MTN...everywhere u go dem go pay run...

I still wonder why Nigerians haven't seen this company for what it is: rapacious, exploitative, unethically restrictive and greedy.

This is a firm that denied us per second billing, that charged to call its customer care (back in the early days of GSM ) while econet was doing it free.

When the NCC introduced porting, porting out of mtn was sheer war. They practically frustrate subscribers who wanted out of their network.

But millions of Nigerians still patronise the enemy in a veil. I have since ported out of this scam called mtn.

So them been de wait for us, huh?


























In other news, if you are using Hell--Tee--Hen line to browse, chat, ping, text, or even 'buy a piece of land' @ NairaLand


...or even quote me....








...then you must be an APC (Oo-Yes) member...Q.E.D

Copy copy. It's all good sha.

All the witches wey MTN don offend don start to dey roast suya for them .

.

MTN is overdoing it.
U've got to imbibe the spirit of competition, not just to encroach a host country and kill all the local but growing industries.
#recieveSense