The Royal-backed number three telco claimed unfair competition practices
A Moroccan commercial court has ordered incumbent Maroc Telecom (Itissalat Al-Maghrib IAM-MT) to pay compensation of 6.36 billion dirhams ($636 million) to its competitor Wana Corporate, trading under the brand name Inwi, for unfair competition practices.
Inwi, the third-largest telecom operator in the country, brought the case in 2021, accusing Maroc Telecom of abusing its dominant position in the market. The telco is not a listed company and is majority controlled by the royal family’s holding company Al Mada.
According to Reuters, the fine exceeds Maroc Telecom’s annual 2022 profit of 5.82 billion dirhams.
Abuse of dominant position
In 2020, Morocco’s telecom regulator (ANRT) fined Maroc Telecom 3.3 billion dirhams for abusing its dominant position in the market by hindering competitors’ access to unbundling on its network and the fixed market. The initial fine imposed by the ANRT on Maroc Telecom was to penalise behaviour constituting an “abuse of a dominant position”.
This decision prompted Inwi to temporarily withdraw its complaint in the hope of seeing fair competition restored to the market. However, the legal saga did not end with the withdrawal of the complaint and was brought to a head this week.
Maroc Telecom, which is also listed on Euronext Paris, is 53% controlled by the UAE’s Etisalat, with the Moroccan state owning 22%. Besides Morocco, Maroc Telecom operates subsidiaries in Benin, Burkina Faso, Ivory Coast, Gabon, Mali, Mauritania, Niger, Chad, Togo and the Central African Republic. Shares of Maroc Telecom, the second-largest company on the Casablanca stock exchange by market capitalisation, fell almost 10% following the first instance verdict.
A lawyer familiar with the case told Reuters the telco has the right to appeal and the telco released a statement saying it would as soon as it is notified.