On 27th July, 2022, the Commission received an application from TNM Mpamba Limited for an Exclusive Dealing Arrangement of its mobile money services. The application followed the discovery that TNM Mpamba was implementing exclusive arrangement agreements that prohibited agents from selling competitor’s products within the Applicant’s branded shops and kiosks without the Commission’s authorization. The Commission, therefore, requested TNM Mpamba to submit its application for assessment in accordance with Section 44 of the CFTA.
TNM Mpamba submitted that the proposed exclusive dealing arrangement only relates to TNM Kiosks and TNM Branches not small traders who do business under umbrellas. These small traders would not be affected by the arrangement and are allowed to sell anything including products from competitors.
Among others the Commission noted the following:
- That the proposed agreement would not substantially affect competition in the relevant market;
- That the agreement would not affect the distribution and availability of rival products since there are several distribution channels including own agent networks that service providers use to reach out to their respective customers;
- That there are some agents that are non-exclusive, and would be offering services of competitors. These will provide access to customers including in rural and semi-urban areas.
- That the transaction would not adversely affect the small-scale agent’s business operations in rural areas.
Therefore, the Commission resolved that the proposed exclusive dealing arrangement between TNM Mpamba Ltd and its agents should be approved on condition that the TNM Mpamba would review incentives, including the commission it offers to its agents.