CFTC orders TNM Mpamba to open e-ticketing platform to other payment providers

The Competition and Fair Trading Commission (CFTC) has directed TNM Mpamba Limited to revise its exclusive e-ticketing arrangement for Super League matches, saying it limits consumer choice and stifling competition in the mobile payments market.

CFTC Chief Executive Officer, Lloyds Vincent Nkhoma, made the announcement in Blantyre on Wednesday, stating that the Commission found the arrangement to be in potential violation of competition law and national payment systems regulations.

According to the Commission’s findings, by requiring fans to use only the Mpamba platform and debit card to access the service, the system would effectively block out other mobile money providers such as Airtel Mobile Commerce Limited, as well as banks and non-bank financial institutions.

“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,” reads part of the Commission’s assessment.

The Commission further noted that the arrangement is inconsistent with Malawi’s Payment Systems (Interoperability of Retail Payment Systems) Directive of 2017 and the Payment Systems (E-Money) Regulations of 2018, both of which promote interoperability among digital payment platforms.

While the CFTC acknowledged the potential efficiency and public interest benefits of the e-ticketing solution, it emphasized the need for inclusivity and access. The Commission expressed concern over low public awareness of the new system, particularly among football fans, club administrators, and gate managers.

As a result, the Commission has ordered TNM Mpamba and its partners to implement both e-ticketing and physical ticketing concurrently for a six-month transition period and open the e-ticketing platform to other payment service providers within one year to ensure interoperability.

CFTC has also ordered that TNM Mpamba and its partners conduct widespread awareness campaigns targeting football clubs, supporters, and venue staff and submit verifiable progress reports to the Commission every 90 days over the next two years.