Tough times ahead for Maroc Telecom after losing case to Inwi

Morocco’s largest telecom operator, Maroc Telecom, is expected to take a blow in terms of its profitability at the Casablanca stock exchange after losing a case brought by its competitor Wana Corporate.

Maroc Telecom said it will appeal the decision by a commercial court in Casablanca ordering the operator to pay Wana corporate, known by its Inwi brand, 6.4 billion dirhams.

The court, which confirmed a first instance verdict, found Maroc Telecom guilty of violating free competition rules and abusing its position as market leader.

However, the market expected the sanction and Maroc Telecom shares dropped slightly only, with share price devaluing from 105 dirhams to 89.5 dirhams on July 4.

The sanction makes Maroc Telecom shares an investment on the medium and longer terms, as the company could withhold sharing this year’s dividends, according to observers.

The company plans to distribute 2023 dividends worth 3.7 billion dirhams. Some market experts expect the company to resort to debt to pay both dividends and the compensation to Inwi.

In 2020, Maroc Telecom was found guilty of practicing anti-competitive practices since 2013, the regulator ARNT said, imposing a fine of 3.3 billion dirhams on the operator.

Maroc Telecom was fined for refusing to share unbundling on its network with other competitors in order to maintain monopoly of fixed broadband.

Maroc telecom posted a profit of 6.19 billion dirhams in 2023. The company is listed both on Casablanca and Euronext and operates in Morocco, Benin, Burkina Faso, the Central African Republic, Chad, Gabon, Côte d’Ivoire, Mali, Mauritania, Niger, and Togo.