- Key victory for Telecom Argentina: Appeals court suspends the government’s injunction, permitting consolidation activity.
- Antitrust battle escalates: The government’s decision remains under review by regulators, with concerns over market concentration persisting.
Court grants in Telecom Argentina merger case
On 9 June 2025, Argentina’s Federal Court of Appeals issued a ruling granting Telecom Argentina’s appeal “with suspensive effect” against a March resolution from the Ministry of Industry and Commerce. The original resolution had prohibited Telecom from advancing with the integration of its recently acquired Telefónica Argentina operations, citing concerns over potential market dominance—up to 61% in mobile services, 69% in fixed-line telecommunications, and as much as 80% in residential broadband in certain regions.
The US$1.25 billion merger, finalised in February, forms part of Telefónica’s broader strategy to scale back its presence in Latin America. The court’s ruling permits Telecom and Telefónica Argentina to resume operational integration activities, such as infrastructure sharing and systems alignment, while the court continues to assess the legal foundations of the case.
However, the decision remains provisional. The appellate court’s ruling merely suspends the government’s previous order and does not resolve the underlying legal or regulatory concerns. Other authorities—namely the National Commission for the Defence of Competition (CNDC) and the national telecoms regulator Enacom—retain the power to impose conditions or restrictions pending further review.
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Why it’s important
This interim ruling marks a critical turning point in one of Argentina’s most politically charged corporate disputes. President Javier Milei, a selfdeclared libertarian, had swiftly intervened behind the scenes in favour of market competition—but critics argue that his actions also reflected personal animosity towards the Clarín media group, which holds a 40 per cent stake in Telecom Argentina. His government described the deal as risking a de facto monopoly in a pivotal sector .
From a broader industry perspective, the ruling underscores the tension between streamlining business operations and preserving competitive markets—a balance that regulators worldwide continue to struggle with. The outcome will have implications for Argentina’s digital infrastructure, consumer pricing, and future telecom consolidation.
What’s more, Telecom’s move to issue US $800 million in bonds to support the takeover adds financial complexity to the merger’s regulatory backdrop.As the appellate court takes a back seat on enforcement for the time being, the spotlight turns to CNDC, Enacom, and possibly even the Supreme Court to determine whether the merger will ultimately be allowed—and under what conditions.
