Argentine govt overturns price controls on telecommunications

Argentine President Javier Milei repealed decree 690 issued by former president Alberto Fernández, which declared telecommunications to be public services and imposed strict price controls on them.

Courts had prevented decree 690 from being applied by quickly accepting injunctions against it. In November 2023, the first substantive ruling in the case was announced, declaring decree 690 null and void.

Milei also amended articles 48 and 54 of the Argentine digital law. With the new amendments, article 48 of the Argentine Digital law will read: “ICT services licensees will set their prices, which must be fair and reasonable, cover the costs of operation and enable efficient provision and a reasonable operating margin.”

Article 15, which declares telecommunications a competitive public service, is repealed. Article 54 was also amended to maintain basic telephone services as a public service.

Specifically, the changes made by Fernández to the laws enacted by the administration of previous president Mauricio Macri have now been overturned.

The price controls established by the Fernández government immediately drew the ire of operators, leading them to halt investments, blocking government plans to boost the sector and producing asymmetries between operators who were able to win injunctions against the measures and those who were obliged to adhere to price controls set by the regulator. Enacom, which prevented them from raising them by more than inflation.