Uganda Court of Appeal: MTN Not Liable Under Communications Act, Liable in Tort

On October 22, 2026, the Court of Appeal of Uganda, in *MTN Uganda Limited v EZEE Money Uganda Limited* (Civil Appeal No. 66 of 2016), found MTN Uganda Limited not liable under the Communications Act but liable in tort for wrongful interference, subsequently reducing the awarded damages.

The Court of Appeal determined that EZEE Money Uganda Limited's payments business did not qualify as a "communication service" under the Communications Act, thereby absolving MTN Uganda Limited of liability under that specific statute. However, the court concurrently found MTN Uganda Limited liable for the tort of wrongful interference, indicating a breach of common law duties, and proceeded to reduce the damages initially awarded, though the specific quantum of the reduction is not reported.

This ruling provides crucial clarification on the scope of the Communications Act in Uganda, particularly regarding what constitutes a "communication service" and its applicability to financial technology (fintech) or payment services. It also reinforces the enduring importance of common law tort principles, such as wrongful interference, in regulating business conduct, even where sector-specific statutory liability might not apply. For businesses operating in converging sectors, it highlights the dual regulatory landscape involving both specific legislation and general common law obligations.

The primary legal framework involved in this case includes the Communications Act of Uganda, which governs the provision of communication services, and the common law of torts, specifically wrongful interference with business or contractual relations. The Court of Appeal sits within the Ugandan judicial hierarchy, above the High Court and below the Supreme Court, and its decisions are binding on lower courts. The key parties were MTN Uganda Limited, a major telecommunications and mobile money provider as the appellant, and EZEE Money Uganda Limited, a payments business, as the respondent.

Attorneys advising telecommunications companies, fintech firms, and payment service providers in Uganda must carefully assess the classification of services under the Communications Act and other relevant statutes. They should also be acutely aware of potential common law tort liabilities, such as wrongful interference, even when statutory compliance is met. Businesses should review their operational practices to avoid actions that could be construed as tortious interference, understanding that statutory non-liability does not preclude common law claims. The reduction of damages also signals the court's discretion in assessing the quantum of loss, requiring robust evidence for both liability and damages claims.