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Telecom giant e& Group expressed its “disappointment” in the Casablanca Court of Appeal’s rejection of an appeal by its subsidiary Maroc Telecom in an antitrust case, it said in a statement yesterday. The telecoms giant had already confirmed it would challenge the court decision, which will see the Moroccan subsidiary pay some AED 2.3 bn to competitor Inwi over “alleged anti-competitive practices.” e& holds majority stakes in Maroc Telecom at 53% shares, while the Moroccan government holds a 22% stake.
Challenging regulatory environment to blame: “It is unfortunate that while global capital is looking to leverage the transformative power of technology to enhance digital infrastructure, smart government services, and digital solutions for people, a challenging regulatory environment negatively affects the future outlook of our investments in Morocco,” Chairman Jassem Mohamed Bu Ataba Alzaabi said.
e& does not expect 2Q results to be impacted by the court decision due to “adequate coverage of international regulatory risks,” it said in the statement.
Could e& divest from Morocco? The statement quotes CEO Hatem Dowidar as saying all options are on the table for its investments in Maroc Telecom, citing repeated setbacks including regulatory penalties and legal judgments that hinder its ability to compete in the market. The Moroccan unit has already paid some USD 1.2 bn in penalties over the past few years, which e& says is among the highest penalties paid in the telecoms sector.
