According to Reuters, Telecom Italia (TI) has appealed a ruling by Argentine anti-trust agency, the National Commission for the Defense of Competition, barring the telco from making any decisions regarding its local subsidiary, Telecom Argentina. TI’s lawyers said in the appeal that the body did not have the authority to issue such a resolution: ‘The resolution results in the absolute, arbitrary and unreasonable trampling of (the company’s) rights and constitutional guarantees … stripping its property rights and granting these to the minority shareholder without justification.’
According to CommsUpdate, an investigation was opened after Telefonica joined a consortium that acquired a 24.7% stake in TI in October 2007. TI owns a 50% stake in the Sofora holding company that controls Telecom Argentina. When Argentina’s telecoms sector was privatised in the 1990s its fixed line services were divided between Telecom Argentina and Telefonica de Argentina, with a government directive stating that there should be no cross-ownership between the two.