Malawi’s Competition regulator has fined local subsidiary of India’s mobile operator, Airtel, 2.1 billion kwacha equivalent to $2.6 million on Wednesday, September 29, 2021.
The fine was imposed by the Competition and Trade Fair Commission (CTFC) after an investigation prompted by complaints from customers.
The CTFC described the act by the mobile operator as “unconscionable conduct”. The complaints “accused Airtel Malawi of having stopped automatically crediting its;customers’ accounts with monthly bonuses” of call credits due under a loyalty programme.
The competition authority estimated that the company has made a profit equivalent to $2.6 million;as a result of its activities and therefore, fined the company the same amount.
The Commission’s investigations
The commission’s Acting Executive Director, Apoche Itimu, told a news briefing that the commission launched an;investigation into Airtel Malawi on September 16, following several complaints from consumers. “It was alleged that the Airtel Malawi stopped automatically crediting customer accounts with monthly bonuses” of airtime, she said.
Instead, consumers had to request their free airtime on the 14th of every month and those who failed to do so lost their bonus. Itimu said the company made a financial gain of about 2.1 billion Kwacha (K) by “engaging in unconscionable conduct in the trade of goods and services”.
Sources say the company continues to make huge profits that are higher than the size of Malawi’s entire economy.
Reports say Bharti Airtel’s annual turnover of $14 billion for the 2020/2021 fiscal year is greater than the GDP;of Malawi, estimated at $12 billion in 2020, according to the World Bank. Malawi is one of the poorest countries;in the world as its GDP per capita ranks among the 15 lowest in the world.
Airtel Malawi’s response
However, in a statement, Airtel Malawi’s Managing Director, Charles Kamoto “denied the charges levelled”, saying “the company is pursuing the matter further in court”. He stated that the company does not engage in any activity that run counter to the laws of the state.
“Airtel complies and continues to fully comply with the relevant and applicable laws”.
Charles Kamoto
Airtel Malawi is a subsidiary of the Indian group Bharti Airtel, present in 18 countries in Africa;and Asia, presenting itself as the largest mobile operator in Africa.
Last year, Charles Kamoto announced increasing benefits of its bundles and reduction;of Pay-As-You-Go (PAYG) tariffs from K15/MB to K5/MB with effect from August 3, 2020. According to him, this was in response to concerns from its customers, especially data users over tariff charges.
Airtel Malawi’s recent contributions
Despite the recent complaints, the company continues to contribute significantly towards the development of the country. Last month, the company signed an agreement with the public broadcaster, the Malawi Broadcasting Corporation (MBC), to telecast live EPL games.
Charles Kamoto, Airtel Malawi’s Managing Director, said the company is committed;to bringing the best to its subscribers and the nation as a whole. According to him, the company was satisfied with the live broadcast of the Tokyo Olympic games which they sponsored on the MBC TV. He averred that the focus of the Company is to bring the games to the doorsteps of all, especially those in the rural areas.
In July 2021, Airtel Malawi donated K15 million worth of assistive devices to learners with disabilities to complement government efforts in promoting inclusive education in the country. In February, Airtel Malawi donated additional K100 million to mitigate the current challenges in the fight against the COVID-19 after an earlier donation of K104 million in June 2020.
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