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Argentina hits Telefonica with $27 million fine

Argentina is levying a $27.2 million fine against Spain's Telefonica for a failure to divest holdings that give it market dominance in the South American country.
/ Source: The Associated Press

Argentina is levying a $27.2 million fine against Spain's Telefonica for a failure to divest holdings that give it market dominance in the South American country.

Spain's Telefonica owns Telefonica Argentina. And since 2007, Spain's Telefonica has owned 26 percent of Telecom Italia, which in turn owns about half of Telecom Argentina.

Economy Minister Amado Boudou says the arrangement gives Telefonica a "very strong" market position. Telefonica and Telecom Argentina are the nation's only fixed-line providers and major mobile carriers.

Regulators had ordered Telecom Italia to sell its shares of Telecom Argentina but say it did not comply.

Boudou spoke on Wednesday. Telefonica representatives did not return calls.