Argentina appeals in ongoing Telecom Italia sale

Argentina’s antitrust agency, the National Commission for the Defense of Competition (CNDC), appealed a lower court ruling that suspended a government-set timeline by which Telecom Italia (TI) was ordered to sell its 50 percent stake in Sofora, the holding company that controls fixed line incumbent Telecom Argentina, BNamericas reports according to TeleGeography CommsUpdate.

BNamerica cited the daily La Nacion as a source.

In early January, TI appealed an Argentine government order for it to begin the sale process before Feb. 24 or face intervention. The order wants the sale to be completed by Aug. 25.

The court sided with TI and suspended the deadlines until it can be determined if Telefonica of Spain’s shareholding in TI affects competition in the local market.

 According to TeleGeography’s GlobalComms Database, the CNDC ruled in August 2009 that TI’s indirect stake in Telecom Argentina violated antitrust legislation and ordered the company to sell the 50 percent shareholding, as Telefonica, which acquired a 24.7 percent stake in the Italian firm through the Telco consortium in October 2007, already owns Argentina’s other fixed line operator Telefonica de Argentina, causing cross-ownership issues.