Ugandan court slams $622,000 fine on MTN

The fine on MTN group has risen by $622,000 as a commercial court in Uganda ruled that the telecommunications firm pay for sabotaging EzeeMoney Limited.

According to an Ugandan newspaper, Daily Monitor, Henry Adonyo, the presiding judge ordered MTN Uganda to pay Shs800m ($239,520) in general damages for loss of business and Shs1.5b ($449,100) to EzeeMoney as punitive damages, saying it would deter uncompetitive business tactics.

In October, MTN was fined $5.2bn (N1.04tr) by the Nigerian Communications Commission (NCC), for its refusal to disconnect 5.1 million unregistered subscribers.

As MTN seeks to review its fine in Nigeria, it has also appealed the $622,000 imposed on it by the Ugandan court.

“Take notice that the defendant being dissatisfied with the decision of the Commercial Court, intends to appeal to the Court of Appeal against the whole decision,” MTN said in a filed appeal notice.

“MTN respects the decision of the court but fundamentally disagrees with it. MTN is aggrieved by the judgement primarily because EzeeMoney is not a licensed communications provider.

“MTN cannot be in breach of the law that prohibits anti-competitive conduct with regard to licensed communications service providers when EzeeMoney is not licensed and does not provide communications”.

MTN further said EzeeMoney was no threat to its business in Uganda, saying it cannotbe hostile to the plaintiff.

“It is wrong and inaccurate for EzeeMoney to state that MTN perceived EzeeMoney’s innovative offerings as a threat when all MTN did was to require EzeeMoney to engage MTN directly and to require EzeeMoney to use the prepaid services.

“MTN’s position is that these can never be hostile and underhanded actions or abuse and predatory anti-competitive behaviour as alleged.”

The telco has a presence in over 20 countries in Africa, with Nigeria being regarded as its cash cow.