FOLLOW US

Argentina’s government is launching an investigation into whether Telefónica’s $1.2 billion sale of its Argentina unit to Telecom Argentina could create a telecommunications monopoly, President Javier Milei announced late Monday.

The deal, which was revealed the same day, could see nearly 70% of Argentina’s telecom services controlled by a single entity, prompting concerns over competition, consumer choice, and economic stability.

Regulators Step In as Telefónica Exits Latin America

Argentina’s National Commission for the Defense of Competition will oversee the investigation, though no official timeline has been given for its launch. The involved telecom companies—Telefónica SA and Telecom Argentina SA—have yet to respond to the growing scrutiny.

Telefónica, the Spanish telecommunications powerhouse, confirmed that it has sold nearly 100% of its shares in Telefónica Móviles Argentina SA to Telecom Argentina. The move aligns with its broader strategy to reduce exposure in Latin America, marking another step in its shift toward European and high-growth markets.

Telecom Argentina’s Growing Influence Sparks Alarm

Telecom Argentina, a dominant player serving northern Argentina, including Buenos Aires, now absorbs Telefónica Móviles Argentina’s mobile, telephone, and broadband services. The transaction, signed and closed simultaneously, has intensified concerns that a market imbalance could emerge, diminishing consumer options and potentially leading to higher prices.

Financial giant Banco Bilbao Vizcaya Argentaria SA advised Telecom Argentina on the acquisition, though legal counsel details remain undisclosed.

With Argentina’s regulators preparing to scrutinize the deal, industry watchers are waiting to see whether Telefónica’s exit will be a clean break or a regulatory battlefield.