Somaliland’s government has moved to curb what it described as illegal price-fixing by the country’s telecommunications providers, following a sudden and widely criticized increase in internet prices earlier this month.
A ministerial committee appointed to investigate the price hike said Monday that telecom companies acted unlawfully when they simultaneously raised the cost of internet services on August 8, triggering swift public backlash and forcing the firms to reverse course.
Officials said the coordinated move violated the principles of Somaliland’s free-market system, which prohibits companies from jointly setting consumer prices.
Jamaal Mohamed Jama, the Minister of Communications and Technology, said the committee met extensively with internet service providers to assess their justification for the price increase.
He said the government found no legal basis for companies to jointly alter service prices, describing the attempted hike as inconsistent with market competition and harmful to consumers.
Fu’aad Ahmed Nuux, the Minister of Aviation and Airports Development, outlined the committee’s formal decisions, emphasizing that any agreement among companies to raise prices at the same time is prohibited under Somaliland’s commercial framework.
He said price changes must reflect demand and supply conditions—not collective decisions by firms seeking to increase profit margins.
Nuux added that the government will draft new legislation to protect consumers and prevent companies from coordinating future price increases, warning that any commercial action that harms the public is considered unlawful.
The attempted price spike on August 8 ignited an immediate public outcry, with citizens accusing telecom firms of collusion and exploiting their dominant role in the economy. The backlash forced the companies to withdraw the increases within days. Officials said the episode underscores the need for clearer consumer-protection laws and stronger oversight mechanisms to prevent similar practices.
While Somaliland’s telecom sector is often praised for its rapid growth and widespread access, the government said the incident demonstrated the risks of unregulated price coordination in a sector that millions of citizens rely on daily.
The committee’s recommendations, officials said, aim to reinforce competition, safeguard consumers, and maintain public trust in essential digital services.
