Argentina President Javier Milei’s administration has confirmed its intention to take preventive measures to suspend last month’s sale of Telefónica’s Argentine operations to Telecom Argentina, a subsidiary of the Grupo Clarín media conglomerate, Buenos Aires Times reported. In the aftermath of the $1.245 billion deal, the government raised concerns that the merger could result in a monopoly, with approximately 70 percent of telecommunication services controlled by a single economic group, Inside Towers reported.
The government’s decision to implement measures to suspend the effects of the purchase follow a recommendation by the Comisión Nacional de Defensa de la Competencia (CNDC) anti-monopoly watchdog, aimed at protecting consumers and maintaining competition by preventing market distortion.
However, the government’s action is “only a statement” since the operation cannot be officially suspended without prior intervention by the Ente Nacional de Comunicaciones (ENACOM) watchdog, according to AFP. ENACOM must first request documentation from the parties involved before any potential intervention can occur.
Cabinet Chief Guillermo Francos explained that the merger between the two companies would exceed the legal limits on the amount of broadcast spectrum that a single concessionaire can hold, potentially consolidating an oligopoly in the cellular and fiber optic markets, Noticias Argentinas reported. The cabinet chief supported the CNDC’s rejection of the transaction and stated that the process will proceed through the appropriate legal channels.
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