By Our reporter
The Commercial Court in Uganda earlier this month ordered telecom giant MTN Uganda to pay a sum of UGX2.3 billion (about $662,000) in damages to EzeeMoney Limited for sabotaging its business, the Observer reports.
Justice Henry Peter Adonyo ordered MTN Uganda to pay UGX800m to EzeeMoney in general damages for loss of business. It should also pay a penalty of UGX1.5bn in punitive damages to deter not only MTN Uganda but also warn other companies against noncompetitive business tactics.
The latest comes barely a day after MTN Nigeria won a respite from a $5.3b fine imposed by the Nigerian government over unregistered SIM cards that triggered the resignation of MTN Group CEO Sifiso Dabengwa.
In 2013, EzeeMoney sued MTN Uganda after the telecom giant canceled its contract with the mobile financial services provider for the provision of digital transmission (E1) and 30 fixed telephone lines to carry out its mobile money business. The move was reportedly due to assumed direct competition in the mobile money business from EzeeMoney.
EzeeMoney sued through their lawyers AF Mpanga and company advocates, saying MTN’s action “restricted and distorted competition.â€
Via NBS TV.
