Why Are Telecom Argentina Shares Trading Higher Today?

An Argentinian court has dismissed legal action brought by Telecom Argentina SA (NYSE:TEO) against the government’s plans to prevent alleged price increases, Telecompaper reports based on Europa Press.
Telefonica alleged that the government’s Decree 690 of 2020 was unconstitutional and caused significant harm to the company.
However, the Federal Contentious Administrative Court ruled that the plaintiff failed to attest to the alleged damage sufficiently.
Telefonica has already confirmed that it intends to appeal against the ruling, reports say.
Under Decree 690, internet, pay-TV, fixed, and mobile telephony service operators could increase rates by a maximum of 5% from 2021 following a temporary price freeze.
Earlier this year, the regulator Enacom allowed the authorized mobile operators to raise charges by up to 7.5% in February, and 2.5% in March, provided they reimbursed customers for January price hikes of up to 20%.
The ICT service providers could increase their prices by up to 3% in June and 7% in July to compensate for rising inflation.
Price Action: TEO shares traded higher by 9.09% at $5.52 in the premarket session on the last check Monday.