Argentine conglomerate Grupo Clarin may be forced to divest its local cable operator Cablevision after the supreme court of Argentina announced recently that it was to end the suspension of media ownership limits before the end of the year.
In 2009…
Argentine conglomerate Grupo Clarin may be forced to divest its local cable operator Cablevision after the supreme court of Argentina announced recently that it was to end the suspension of media ownership limits before the end of the year.
In 2009 Clarin won a court suspension against a new law that would have meant it had to dispose of some of its holdings. But the Corte Suprema de Justicia de la Nacion determined this week that the suspension will end in December.
Cablevision may have to be sold as, under the regulations, a company is only allowed one broadcasting license in any single local area, according to NexTV Latam. Clarin owns both Cablevision and a free-to-air TV channel, Canal 13.
This means that Clarin could be asked to divest itself of one of the businesses later this year, along with assets in other areas.
President Cristina Fernandez de Kirchner supports the bill and is in favour of limiting media ownership – in 2009 she said that 73% of Argentina’s radio, television and cable licenses were owned by Clarin, according to a Bloomberg report.
Clarin released a statement in response to the court’s decision saying it believes the ownership limitations are unconstitutional and that the company is waiting for the outcome of another lawsuit.
