Uganda Hits MTN With $622,000 Fine

It seems when it rains for MTN Group, it pours.

This is as a commercial court in Uganda has ordered the telecoms giant’s subsidiaries – 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 also ordered the company on the 6th of this month to stop acting in an unlawful and anti-competitive manner, which denies other businesses the opportunity to prosper.

Justice Adonyo who ordered MTN to pay Shs 800 million to EzeeMoney as general damages for loss of business, also slammed a penalty of Shs 1.5 billion in punitive damages to deter not only MTN but also warn other companies against uncompetitive business tactics.

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