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Cloudflare Challenges Italy's Piracy Shield Fine

Ars Technica •
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14.2 million euros (roughly $16.4 million) is the staggering fine Cloudflare faces for refusing to block websites on its 1.1.1.1 DNS service under Italy's Piracy Shield law, which Cloudflare is now appealing.

The law requires network operators to block domain names and IP addresses reported by copyright holders within 30 minutes of receiving a notification. Cloudflare argues this violates core internet architecture by forcing it to install filters on DNS requests, raising latency and potentially censoring globally. Cloudflare co-founder Matthew Prince stated censoring the 1.1.1.1 resolver would force the company to censor content globally, not just in Italy.

AGCOM imposed the penalty in January 2026, claiming Cloudflare flouted blocking requirements. Cloudflare contends the fine was calculated based on its global revenue, making it nearly 100 times higher than the legal limit of 140,000 euros ($161,000) or 2% of its Italian earnings. The company also highlights the lack of oversight, transparency, and due process in Piracy Shield, which relies on a system provided by SP Tech, an arm of the law firm representing major beneficiaries like Serie A. Cloudflare warns of "widespread overblocking" and points to failures like mistakenly blocking Google Drive.

The appeal is part of Cloudflare's broader challenge to Piracy Shield's legality in Italian courts and the European Commission, arguing it violates EU law like the Digital Services Act. AGCOM has ignored Cloudflare's proposed alternatives that wouldn't break internet architecture. While AGCOM has blocked over 65,000 domains and 14,000 IPs, Cloudflare seeks AGCOM's records to expose the system's flaws.