19 June 2025 – Buenos Aires
In a landmark decision for Argentina’s telecommunications sector, the country’s antitrust watchdog has officially objected to TELECOM Argentina’s proposed acquisition of TELEFÓNICA Móviles Argentina, citing serious threats to competition and the public interest.
The National Commission for the Defense of Competition (CNDC), under the Secretariat of Industry and Commerce (SIyC), issued an Objection Report under Article 14 of the Competition Law (Law 27,442), halting what would have been one of the largest concentration operations in Argentina’s telecom history.
The move follows a detailed review of TELECOM’s plan to acquire full control of TELEFÓNICA, which operates nationwide through the Movistar and Tuenti brands. TELECOM, known for its Personal and Flow services, already holds a dominant presence across mobile, internet, and cable TV markets.
A Market on the Brink of Duopoly
According to the CNDC’s analysis, the merger would reduce Argentina’s mobile telecom market to just two dominant players—TELECOM with 58% market share and AMX (Claro) with 42%—effectively eliminating one of the country’s three key operators.
“This level of concentration poses a significant risk to competition and the general economic interest,” the report states, warning of price hikes, reduced service quality, and fewer consumer choices.
Spectrum Hoarding and Local Monopolies
The CNDC also raised red flags over excessive radio spectrum accumulation, a limited and essential resource for mobile services. In some regions, the merged entity’s spectrum holdings would exceed legal limits by up to 130 MHz, far above the 140 MHz cap set by the National Communications Agency (ENACOM).
In the fixed-line and residential broadband markets, the merger would result in TELECOM gaining potentially monopolistic positions in over 100 localities, with shares surpassing 40%—and in some cases, total market control. Heavily impacted areas include Buenos Aires, Mendoza, Neuquén, and Río Negro.
Unfair Advantage in Packaged Services
The proposed deal would also give TELECOM a national edge in quadruple-play bundles—offering mobile, broadband, pay-TV, and landline services—where it would be the only provider with the infrastructure to deliver all four services nationwide. Regulators say this could make competition effectively impossible for other providers.
In the corporate telecom sector, the merger would give TELECOM a market share exceeding 50%, reinforcing its dominance in a segment crucial for business and institutional clients.
Next Steps
The SIyC and CNDC concluded that the merger, as proposed, would likely restrict or distort competition and issued the Objection Report to formally oppose it. The companies involved will now be summoned to a special hearing, where they may propose remedies or modifications to address the authority’s concerns.
Unless effective mitigations are offered, the merger could be permanently blocked.
The decision underscores Argentina’s tougher stance on market concentration and sets a precedent for future mega-mergers in the digital and telecommunications sectors.
Source: https://www.argentina.gob.ar/noticias/informe-de-objecion-operacion-telecom-telefonica
