Argentina Halts Telecom Takeover Amid Monopoly Concerns

Argentina's government has temporarily stopped Telecom's acquisition of Telefonica's local unit, citing concerns about potential market monopolization. The move, recommended by the National Commission for the Defense of Competition, will be in effect until further analysis. Telecom Argentina plans to continue infrastructure investments.

In a significant move to safeguard market competition, Argentina's presidential office has announced a preventive measure to suspend the pending merger between Telecom and the local unit of Telefonica.

The decision stems from a concern that the $1.245 billion acquisition might lead to a monopolistic scenario, threatening competitive fairness. The Spanish telecom giant Telefonica's plan to divest was part of its strategy to minimize its presence in Latin America.

This action follows advice from the National Commission for the Defense of Competition, urging meticulous examination of the merger's implications. Despite the suspension, Telecom Argentina, partially held by Clarin Group, remains committed to enhancing the country's telecommunications infrastructure, focusing on 5G and fiber optics.

(With inputs from agencies.)