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Argentina: Telefonica´s new challenge to Cable-Telecom merger

By  |  November 12, 2018

Telefónica de Argentina has launched a civil and commercial challege against the resolution taken by the national government authorizing the merger between Cablevisión and Telecom in a widely anticipated action by the company, which has strongly criticized the decision.

The National Commission for the Defense of Competition (CNDC) and the Ministry of Commerce approved the Cablevisión-Telecom merger, conditioning it to a series of divestments. One of those official requirements was that Córdoba should drop 130,000 clients in order to avoid holding a dominant market position. The company itself holds that it has decided to go to court after the CNDC and the Ministry of Commerce “kept absolute silence” regarding their claims.

The solution found by the merged company was to create a company called Universo Net. Universo Net received those 130,000 clients. Telefónica argues that “the Universo Net company does not demonstrate financial or personal independence, in addition to the fact that the assigned customers are not the company’s assets and can not be transferred”.

Full Content: Tiempo AR
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