A Ugandan judge ordered MTN to pay VAS Garage more than 11.3 billion shillings for breaking their agreement. The court found MTN deleted customer data without permission after the companies had worked together since 2014. Justice Stephen Mubiru ruled April 21 that MTN wrongfully removed subscription databases that VAS Garage had built. The telecom company claimed it acted on orders from the Uganda Communications Commission, but the judge disagreed. MTN must pay because it harmed the smaller company.
The conflict started when VAS Garage created a system to send mobile content through shortcodes. To build their customer base, they spent 300 million shillings on promotion. MTN was supposed to handle billing and give 40 percent of the money collected to VAS Garage. Instead, MTN removed the customer database in 2015, saying regulators wanted a Do Not Disturb feature. The court decided MTN acted unfairly.
The judge awarded various amounts for damages—interest on unpaid bills, marketing expenses, lost income, and compensation for unfair business practices. MTN must also pay legal costs with an additional 19 percent interest until everything is paid. The case helps define rights for digital service providers against large telecom companies.
The conflict started when VAS Garage created a system to send mobile content through shortcodes. To build their customer base, they spent 300 million shillings on promotion. MTN was supposed to handle billing and give 40 percent of the money collected to VAS Garage. Instead, MTN removed the customer database in 2015, saying regulators wanted a Do Not Disturb feature. The court decided MTN acted unfairly.
The judge awarded various amounts for damages—interest on unpaid bills, marketing expenses, lost income, and compensation for unfair business practices. MTN must also pay legal costs with an additional 19 percent interest until everything is paid. The case helps define rights for digital service providers against large telecom companies.
