President Javier Milei’s administration in Argentina is assessing Telecom’s acquisition of Telefónica to determine potential monopolistic consequences. This deal could lead to 70% market control by one company, raising concerns over competition. ENACOM and CNCD are tasked with evaluating the situation, with an emphasis on maintaining market fairness and supporting economic objectives.
The Argentine government, under President Javier Milei, has transferred the approval process of Telecom’s acquisition of Telefónica de Argentina to ENACOM and CNCD to assess potential monopolistic implications. The acquisition, valued at US$ 1.25 billion, has raised concerns that it could consolidate 70% of the telecommunications market under a single entity.
The government stated that such a deal might threaten competitive markets and counteract efforts to stabilize Argentina’s economy. Milei’s administration emphasized its goal of preventing monopolistic practices and preserving free competition, pointing out that inflation in the telecommunications sector dropped significantly from 15.6% to 2.3% between December 2023 and January 2025.
Statements from both Telecom and Telefónica affirmed the acquisition, with Telecom aiming to improve digital infrastructure while Telefónica seeks to reduce its Latin American exposure. To avert oligopoly risks, the government may demand Telecom divest Movistar and has reinforced the regulatory framework to discourage monopolies.
ENACOM reiterated the importance of maintaining fair competition and safeguarding communication rights. The government is committed to preventing the emergence of monopolies stemming from long-standing state benefits, emphasizing that such concentration would hinder Argentina’s ongoing disinflation efforts.
In summary, the Argentine government is closely monitoring Telecom’s acquisition of Telefónica to ensure it does not create a monopoly within the telecommunications sector. The administration’s focus on maintaining competition is crucial to its broader goals of economic stabilization and disinflation. By involving regulatory bodies, the government aims to safeguard consumer choice and uphold the principles of free competition.
Original Source: en.mercopress.com
