Competitions and Fair Trade Commission (CFTC) has ordered TNM plc and Super League of Malawi (Sulom) to use both cash and e-ticketing through Mpamba Khadi Mbambande as means of paying for TNM Super League matches’ entry for six months.
The commission has also ordered that TNM and Sulom should, within one year, open the e-ticketing solution to other financial payment service providers to ensure interoperability.
CFTC announced the decision during a press briefing in Blantyre yesterday following TNM’s application for exclusive dealing.
But following its determination made during its 73rd meeting held on June 17, the commission says this transaction can potentially lessen competition in the relevant market and is contrary to the Payment Systems (Interoperability of Retail Payment Systems) Directive, 2017 and the Payment Systems (E-Money) Regulations, 2018.
In a statement, the commission’s chief executive officer Lloyds Nkhoma said: “Making the sale of match tickets exclusive to Mpamba will not only affect football fans who use other payment solutions, but also other market players.
“The arrangement can potentially restrict access to competing payment service providers which could in turn, lock them out of a significant market segment.
“The applicant is a subsidiary of TNM Plc, who is the sponsor of the Super League. Additionally, TNM Mpamba Limited claims a relatively low mobile money market. It is evident, that making the sale of tickets exclusive to Mpamba only will limit consumer choice.
“The arrangement will restrict consumers from purchasing tickets using preferred mobile money platforms. This transaction can potentially lessen competition in the relevant market.”
In an interview, Nkhoma said while e-ticketing might work in Blantyre, it may not be applicable in other parts of the country; hence, the commission’s decision.
He said: “TNM Super League matches are now being played across the country.
“We have matches being played in Santhe, [ Kasungu], we have matches being played in Chitipa.
“We don’t want someone to be turned back at the stadium just because they don’t have Mpamba.”
However, Nkhoma said the commission appreciated the innovation as necessary to curb gate management challenges.
He said: “The e-ticketing is a good innovation. That’s why the commission wants to give it a chance.”
Meanwhile, the commission has also asked Sulom and TNM to submit a report every 90 days for the next two years as verifiable evidence of compliance with the orders.
Sulom general secretary Williams Banda was not available for comment yesterday.
But TNM plc marketing director Sobhuza Ngwenya in an interview said they will respond after receiving the order from CFTC.
He said: “We will provide our comment when we have seen the CFTC order.”
