The court has overturned a government ruling against the sale of Telefónica to Telecom.

The Chamber of the Third Chamber of the Federal Civil and Commercial Court granted, with suspensive effect, the appeal filed by Telecom Argentina SA against Resolution No. 2025/25 of the Secretary of Industry and Commerce, which ordered Telecom to refrain from carrying out any action or decision that would imply the integration, either directly or indirectly, with Telefónica Móviles Argentina SA.

On February 24, Telecom announced its acquisition of Telefónica's Argentine subsidiary . The investment amounted to US$1.245 billion and was made after an intense competitive process, following Telefónica's decision in 2019 to reduce its exposure in the region.

The court ruling announced this Friday returns the situation to the moment when Telecom Argentina submitted the purchase transaction for approval to the National Competition Defense Commission.

In practice, and while the appeal in question is being processed, the Secretary of Industry and Commerce must refrain from carrying out any measure contrary to the suspensive nature of the appeal granted , while also leaving without effect the designation of Dr. María Teresa Pintos as monitoring agent , all while the Chamber continues to analyze the substance of the issue raised by Telecom Argentina SA

The company, for its part, reaffirmed its commitment to users and consumers by ensuring the continuity and quality of the services provided, as well as its willingness to provide technical and regulatory information to enable a comprehensive evaluation of the transaction.

Since the transaction, both Telefónica and Telecom have been operating independently.