The Federal Competition & Consumer Protection Commission (FCCPC) in Nigeria has warned mobile money and bank agents that it will enforce and prosecute those involved in anti-competitive practices such as price fixing cartels. The commission stated that violation of its orders could result in penalties of up to N10,000,000 for corporate entities and up to N1,000,000 in fines or a prison sentence of up to three months for individuals.
In a statement, the FCCPC discouraged the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) and its members, as well as Point of Sale (PoS) operators, from engaging in coordinated efforts to determine, announce, or implement changes in service prices, which is considered price fixing and is illegal.
The commission expressed concern over reports of AMMBAN’s insistence on implementing illegal conduct, even after regulatory warnings. It stated that such actions could lead to the prohibition of merchant services and privileges for PoS operators and AMMBAN members who persist in anti-competitive practices.
The FCCPC urged all parties to comply with the law and avoid engaging in activities that could harm competition and consumers. It also emphasized that it prefers not to disrupt the operations of small enterprises but will take necessary action if anti-competitive practices continue.
The enforcement and prosecution of price fixing cartels are crucial in maintaining fair competition and protecting consumers from anti-competitive behaviors that could lead to higher prices and reduced choices in the market. By ensuring compliance with the law, the FCCPC aims to promote economic efficiency and safeguard consumer interests.
