MTN Uganda Ordered to Pay 300M to Mobile Money Startup For Harassing Its Agents In Anti-Competition Drive
Telecommunications giant MTN Uganda has been ordered by the Court of Appeal to pay UGX 300M in general and punitive (exemplary) damages to the young financial technology firm, EzeeMoney Uganda Limited, for physically harassing its mobile money agents, confiscating their property, and inducing a payments aggregator (Yo! Uganda Limited) to opt out of their aggregation agreement with the firm.
The Court of Appeal decision was issued, on Thursday, 22nd October, by Justice Geoffrey Kiryabwire, with other members of the Court’s Bench, Justices Jesse Byaruhanga Rugyema and John Mike Musisi, agreeing that MTN’s conduct had caused the young firm substantial business losses, with a 79% reduction in its transactions, inactivation of 65% of its service centres, let alone the MTN-induced termination of its aggregation agreement with Yo! Uganda Limited, and the resultant reputational damage.
General damages are a type of damages a Court of law awards a person to be paid by the other person to compensate him/her/it for losses or damage incurred or suffered.
Punitive damages, on the other hand, are damages awarded by the Court against a person to show displeasure with that person’s conduct and to deter similar conduct by others in the future.
Despite NGO claiming its landlord had attempted to evict it and was in the process of selling the land before Appeal, Judge opts for formal court process of execution.
A single undocumented management fee can cost a mid-sized group close to UGX 370 million for one year of income, before anyone argues about penalties for understatement.
