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I have an upcoming Oneworld Award booking that included a FRA-MAD-GRU segment with Iberia. When I booked there was a 2 hour and 5 minute connection in Madrid, which was not a problem.
A couple of days ago there was a schedule change - the same IB flight now departs Frankfurt 10 minutes later and arrives in Madrid at exactly the same time. There's no change to the MAD-GRU flight. I contacted Qantas to confirm the schedule change and was told that they could not re-issue the ticket because the connection time (which hasn't changed) no longer meets the Minimum Connection Time in MAD. Apparently the MCT is now 2 hours, 45 minutes.
I wasn't keen on taking the earlier FRA-MAD flight which would leave me with a 9+ hour layover in Madrid, so asked if I could fly with Iberia out of Hamburg instead. The agent was able to rebook me on HAM-MAD-GRU, which has a 1 hour, 10 minute connection in Madrid. Apparently this connection has a MCT of only 55 minutes.
Who writes these rules?!
TL;DR version: Iberia doesn't allow a connection in Madrid of 125 minutes, but does allow a connection time of 70 minutes. I'm thoroughly confused.
A couple of days ago there was a schedule change - the same IB flight now departs Frankfurt 10 minutes later and arrives in Madrid at exactly the same time. There's no change to the MAD-GRU flight. I contacted Qantas to confirm the schedule change and was told that they could not re-issue the ticket because the connection time (which hasn't changed) no longer meets the Minimum Connection Time in MAD. Apparently the MCT is now 2 hours, 45 minutes.

I wasn't keen on taking the earlier FRA-MAD flight which would leave me with a 9+ hour layover in Madrid, so asked if I could fly with Iberia out of Hamburg instead. The agent was able to rebook me on HAM-MAD-GRU, which has a 1 hour, 10 minute connection in Madrid. Apparently this connection has a MCT of only 55 minutes.

Who writes these rules?!
TL;DR version: Iberia doesn't allow a connection in Madrid of 125 minutes, but does allow a connection time of 70 minutes. I'm thoroughly confused.