The Moroccan appeals court has upheld a consequential ruling requiring Maroc Telecom to pay 6.3 billion dirhams ($630 million) in compensation to its competitor Wana Corporate, known as Inwi, for alleged unfair competition practices.
Inwi, positioned as Morocco's third-largest telecom operator, initiated legal proceedings in 2021, accusing Maroc Telecom of leveraging its dominant market position unfairly. This fine notably surpasses Maroc Telecom's annual profit of 6.1 billion dirhams in 2023. Previously, in 2020, Morocco's telecom regulator (ANRT) fined Maroc Telecom 3.3 billion dirhams for impeding competitors' access to network unbundling and the fixed market.
Maroc Telecom, listed on the Casablanca Stock Exchange and Euronext Paris, is predominantly owned by the UAE's Etisalat (53%), with the Moroccan state holding a 22% stake. Apart from Morocco, Maroc Telecom operates subsidiaries across several African countries. Inwi, privately held and controlled by the investment fund Al Mada of the Moroccan royal family, does not trade publicly.
In 2016, Inwi filed a complaint with the National Agency of Telecommunications Regulation (ANRT), alleging Maroc Telecom's inadequate implementation of local loop unbundling, which allows new operators access to infrastructure connecting customers to local exchanges. ANRT confirmed the complaint in 2017, citing Maroc Telecom's obstruction of competitors' access to infrastructure, thereby hindering their ability to offer landline services. This led to ANRT imposing a fine of 3.3 billion dirhams ($330 million) on Maroc Telecom for anti-competitive behavior in 2020.
The financial implications for Maroc Telecom are substantial, potentially exceeding its 2022 profit of 5.82 billion dirhams ($580 million). BMCI Capital Global Research emphasized the ruling's anticipated profound impact on Maroc Telecom’s profit margins and distribution strategy for 2024. By September 2022, Maroc Telecom's revenue had declined annually by 1.2% to MAD 17.5 billion ($1.6 billion), with Moroccan revenues decreasing by 2.2% to MAD 9.561 billion by June 2022. Meanwhile, international revenue saw a 7.3% increase in the first quarter of 2023 to MAD 4.6 billion ($464,169), while local activities showed a modest 0.6% rise to MAD 4.7 billion ($474,260).
