This is a preventive measure on the recommendation of the National Commission for the Defense of Competition (CNDC).

The Argentine government announced Friday that it has issued a precautionary measure suspending Telecom Argentina's acquisition of Telefónica, following a recommendation from the National Commission for the Defense of Competition (CNDC).

The companies announced almost a month ago that Telecom Argentina had been acquired by Telefónica's Argentine subsidiary for $1.245 billion.

Telecom Argentina said in a statement that it had not yet been formally notified of the resolution.

"The merger of both companies would significantly increase their market share," the CNDC warned, according to a statement from the Argentine presidency.

According to the Argentine government, the transaction would result in a 61% concentration of the mobile phone market, a 69% concentration of landline telephony, and an 80% concentration of residential internet in some parts of the country.

The precautionary measure will remain in place "until further analysis of the reported transaction is completed," the statement said.

Hours after the government announced the precautionary measure, Telecom Argentina issued a statement indicating that it had not yet been formally notified by the authorities.

"The company reiterates its commitment to complying with current regulations and established procedures and awaits official communication to assess the scope of the measure and respond promptly within the appropriate framework," the communications company said.

"Telecom reaffirms its willingness to collaborate with the relevant agencies in the analysis of the transaction, with the aim of ensuring a transparent process fully in line with international standards and free competition," he added.