E& Group vows legal challenge after court upholds fine against Maroc Telecom

E& Group expressed disappointment following the Casablanca Court of Appeal’s decision on July 3, 2024, to dismiss an appeal filed by its subsidiary, Maroc Telecom.

The ruling upheld a judgment from the Rabat Commercial Court, dated January 29, 2024, which ordered Maroc Telecom to pay a fine of MAD 6.368 billion (USD 645 million) to WANA for alleged anti-competitive practices.

As a majority shareholder with a 53% stake in Maroc Telecom, E& Group affirmed its belief in the validity of Maroc Telecom’s legal stance. The group intends to pursue all available legal avenues to challenge the ruling and safeguard its investment in Maroc Telecom.

E& Group clarified that the judgment will not impact its consolidated financial results for the second quarter of 2024 and beyond, citing adequate coverage of regulatory risks in its accounting policies.

H.E. Jassim Mohammed Buatabeh Al Zaabi, Chairman of E& Group, expressed regret over the regulatory challenges affecting future investments in Morocco amidst global efforts to enhance digital infrastructure and smart government services.

Hatem Dowidar, CEO of E& Group, underscored the company’s commitment to legal compliance in all markets and highlighted the importance of digital empowerment in driving the group’s success.

Dowidar emphasized the necessity for constructive collaboration between service providers, regulators, and legislators to foster societal and individual development through digital solutions.

In conclusion, Dowidar reiterated that E& Group remains open to exploring all options regarding its investment in Maroc Telecom, citing frustration over regulatory hurdles and court decisions that have reportedly cost Maroc Telecom more than MAD 12 billion (USD 1.2 billion) in recent years.

This financial penalty stands as one of the largest fines in the global telecom sector, impacting Maroc Telecom’s ability to compete and invest in the market.