The Argentinean government is to open a new antitrust probe into Telecom Italia’s indirect stake in Telecom Argentina, instead of continuing the current case, which has become increasingly complicated and stuck in courts.
In early 2010, the Argentine…
The Argentinean government is to open a new antitrust probe into Telecom Italia’s indirect stake in Telecom Argentina, instead of continuing the current case, which has become increasingly complicated and stuck in courts.
In early 2010, the Argentine antitrust commission ordered Telecom Italia to sell off its shareholding in the Argentine operator by February 25, but an Argentine court in late January halted this ruling, stating that foreign companies that were ordered to sell were not listened to or warned, in order to let them give explanations.
The Argentinean authorities initially ordered Telecom Italia to sell off its indirect stake in Telecom Argentina after it was decided that Telecom Italia majority owner Telco, controlled by Telefonica, had too much power on the Argentinean market, as Telefonica also operates Telefonica de Argentina in the country. Telecom Argentina and Telefonica de Argentina are the two main operators in Argentina.
Telecom Italia holds a 50% stake in the Sofra holding company, the firm which controls the Argentinean telco.
The government is now starting a fresh review of the case, as it fears it could take years to resolve the matter and there are now too many court cases in process. There are reportedly two resolutions which are likely outcomes of the review – one that Telecom Italia is ordered to sell off the stake by August 25 2010, the other that an Argentinean economy minister heads up the investigation of the monopoly in the country’s telecoms sector, and decisions are then taken following that review.