- Argentina halts Telefónica’s sale over monopoly concerns.
- Telecom Argentina’s market share would have risen to 61%.
What happened: Government blocks Telefónica’s sale over monopoly concerns
The Argentinian government has blocked Telefónica’s proposed $1.2 billion sale of its local unit, citing competition concerns. The administration of President Javier Milei imposed the measure to prevent Telecom Argentina, owned by the Clarin Group, from gaining excessive control of the country’s telecoms market.
Argentina’s Commission for the Defence of Competition warned that the deal would give Telecom Argentina around 61% of the mobile market and approximately 80% of residential broadband services. The government stated that the transaction would have resulted in a “monopoly formed thanks to decades of state benefits.”
The sale was announced in late February as part of Telefónica’s broader strategy to consolidate its Latin American assets and refocus on core markets in Germany, Spain, and the UK. Telecom Argentina has said it was not officially informed of the block but will cooperate with regulatory reviews.
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Why it’s important
The decision to block Telefónica’s sale will impact Argentina’s telecoms industry. If approved, Telecom Argentina would have gained dominance, creating concerns about market competition and consumer pricing.
Telefónica has been selling its Latin American assets, and it is now exploring the sale of its Mexican business while also dealing with Peru’s bankruptcy filing. The blocked sale shows that Argentina is carefully monitoring telecom consolidation to ensure a competitive market.
