₦airaland Forum

The commercial court has ordered telecoms
giant MTN Uganda to pay the sum of Shs2.3
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.

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

Cc: lalasticlala

mtn eyaf die

dem wan kill mtn. Pls forgive chai I dey pity dem small.buh it serves dem right dey deducted my airtime n dey no return so make dem go pay.

Chai! Many people get MTN for mind o. Maybe Nigeria should forgive her then

Prodigal Company!

kai Mtn in trouble again

They deserve what's coming there way. Mtn is used to reaping people off and I hope that they will be issued a notice to stop operations until the damage is paid. 'cos I know quite well they will do everything in their power to make sure the citizens of country pay it unknowingly.

MTN chopping fine everywhere you go

End time mtn

ok

Serve them right M T N being fraud Nigerians sense 2004

eagleae7:
End time mtn

End-Time Comment