The Argentine government has fined Telefonica de Argentina US$27.4m for failing to notify the antitrust regulators of ownership changes which could have affected the Argentine telecom market.
The government argues that Telefonica’s stake in Telecom…
The Argentine government has fined Telefonica de Argentina US$27.4m for failing to notify the antitrust regulators of ownership changes which could have affected the Argentine telecom market.
The government argues that Telefonica’s stake in Telecom Italia gave it a dominant position on the local market, as it had interests in the market via both Telefonica de Argentina, in which it holds a controlling stake, and Telecom Italia’s local unit Telecom Argentina.
The government also stated that it intends to present Telecom Italia with a timeline for selling its Argentinean stake. In mid 2009, the government announced that Telecom Italia must sell off its Argentinean shareholding for Telefonica to be allowed to operate in the country. Further details on this are expected shortly from the government. Telecom Italia has begun the process for the stake sale and has reportedly already received five bids for its 50% stake in Sofra, the holding company which controls Telecom Argentina. The remaining 50% stake in Sofra is held by the Werthein group.
