The European Commission has accused KKR of providing false or misleading information to EU regulators during its €22bn acquisition of Telecom Italia’s fixed-line network in 2024. The US private equity group is under investigation after telecoms operators complained that prices to access the network had risen despite assurances given during the regulatory clearance process.
“KKR appears to have provided incorrect or misleading information about whether it would keep its existing long-term access agreements under the same terms unless mutually agreed otherwise,” said EU competition chief Teresa Ribera. Brussels approved the deal — which carved the fixed-line network out from Telecom Italia — after receiving assurances that wholesale access for rivals would not worsen. A fresh investigation was opened last year following complaints by operators.
The Commission stated it “takes the preliminary view that KKR, at least negligently, submitted incorrect and/or misleading information” about the access agreements, including claims that existing terms would continue and could not be unilaterally changed. KKR said it “strongly disagrees” with the preliminary assessment and plans to challenge it, maintaining it stands by the information provided during the 2024 review.
Since KKR took control of the Fiber Cop network, relations with major customers — including Telecom Italia, Fastweb, Vodafone, Iliad and Wind Tre — have grown strained over wholesale access prices and service quality. The disputes are complicating KKR’s efforts to make Fiber Cop profitable amid declining connections, heavy debt and pressure from Rome to merge with state-controlled Open Fiber.
Source: Financial Times Companies · Summarized by HeadlinesBriefing