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Maroc Telecom Appeals $636 Million Antitrust Ruling in Favor of Inwi

Maroc Telecom Appeals $636 Million Antitrust Ruling in Favor of Inwi
Thursday 01 February 2024 - 14:46
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Morocco's leading telecommunications company, Maroc Telecom, is set to appeal a significant $636 million antitrust ruling issued on Monday. The ruling mandates compensation to its competitor, Inwi, owned by Wana Corporate, according to multiple sources.

The Rabat Commercial Court has directed Maroc Telecom to pay Wana Corporate 6.3 billion Moroccan dirhams ($636 million) after finding the company culpable of anti-competitive practices in the telecom market, following liberalization reforms. Notably, Inwi had initially sought 6.85 billion dirhams ($684 million) in compensation in this high-profile case.

The crux of the matter revolves around Maroc Telecom's alleged misuse of its dominant position by imposing restrictions on local loop unbundling (LLU), a process that enables rivals to access its network infrastructure.

The roots of this dispute can be traced back to 2016 when Inwi filed a complaint with the telecom regulator ANRT, accusing Maroc Telecom of hindering LLU access since the market opened up in 2013. Subsequent investigations by ANRT in the following year substantiated these allegations of anti-competitive practices.

In 2019, ANRT had already imposed a 3.3 billion dirham ($329 million) fine on Maroc Telecom for impeding competitors' growth through its LLU strategy. The recent court ruling on Monday exacerbates the company's regulatory and financial challenges.

Analysts anticipate that this latest antitrust penalty could significantly impact Maroc Telecom's profit margins in 2024, unless provisions were made in the late 2023 financial statements.

This prolonged legal battle underscores the difficulties of introducing greater competition into historically monopolized markets, such as telecommunications. As the dominant player, Maroc Telecom is adjusting its strategies to navigate a more open field, at times testing legal boundaries as emerging rivals like Inwi vie for market share.

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