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Telecom Italia Ordered to Sell Argentine Assets
Buenos Aires, Aug 27 (EFE).- Argentine anti-trust authorities ordered Telecom Italia to sell its telephone holdings in the country to prevent Spain's Telefonica from dominating the local market, the press reported Thursday.
According to the National Commission for the Defense of Competition, or CNDC, Telefonica has assumed a "dominant position" in the telecommunications market, noting that the Spanish group controls Telefonica Argentina and - because it also owns part of Telecom Italia - also has an indirect stake in rival operator Telecom Argentina.
The CNDC's vice-chairman, Humberto Guardia told business daily El Cronista that Telecom Italia has been given one year to sell its 50 percent stake in Sofora, the holding company that controls Telecom Argentina.
A month ago, Argentina's Communications Secretariat said Telefonica's indirect stake in Telecom Argentina violates the country's telecommunications regulations, serves to eliminate competition and cannot be authorized.
But Telecom Italia says Telefonica's minority stake in the Telco consortium, which in turn owns 24.5 percent of the Italian company, has no impact on the Argentine market. EFE
Posted to the site on 28th August 2009