Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Friday, July 24, 2009

SECOM: "Purchase of Telecom Italia's shares impacts market adversely"

The Secrtetariat of Communications (SECOM for its Spanish acronym) issued a resolution upon request of the Comisión Nacional de Defensa de la Competencia (CNDC), in which it states that the purchase of Telecom Italia's shares by Telefónica de España will affect the Argentine market "in such a way that it will infringe prevailing regulatory framework."  The note 1,459 dated July 23 states that "the transaction infringes the applicable regulatory framework to telecommunications, since it violates the rules making up telecom framework. Finally, the State could not approve an operation that attacks free choice and fair competition." Within clauses, SECOM states that "in the case being assessed, the State should consider and protect general economic interest; and as it is an utilities company, it should assess consumers' interest as well."

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