The European Commission has issued a Statement of Objections to global investment firm KKR, alleging that the company provided incorrect or misleading information during the merger review of its acquisition of NetCo. The preliminary finding follows a formal investigation opened by regulators after third-party telecommunication operators complained that FiberCop, the entity holding Telecom Italia’s fixed-line infrastructure, unilaterally increased wholesale access prices despite earlier assurances that existing contract terms could not be altered without mutual consent.

When KKR notified Brussels of its plan to acquire sole control over NetCo in April 2024, European antitrust officials raised serious doubts about potential market foreclosure. Concerns centered on whether FiberCop would restrict or degrade access to critical passive broadband infrastructure in Italy. In response to formal regulatory requests for information, KKR assured the Commission that existing long-term wholesale supply agreements with competitor operators would remain fully valid and enforceability intact, preventing any unilateral deterioration of commercial access conditions. Relying heavily on those submissions, the European Commission granted unconditional clearance for the transaction in May 2024.

However, subsequent complaints from competing operators prompted European antitrust officials to re-examine the accuracy of KKR’s statements. The Commission now takes the preliminary view that KKR, at least through negligence, submitted inaccurate or misleading details regarding the binding nature and modification clauses of those wholesale access agreements. Under the EU Merger Regulation, accuracy in formal responses is fundamental, as regulatory filings form the primary evidentiary basis for merger evaluations across the bloc.

The issuance of a Statement of Objections marks a formal procedural step and does not prejudge the final outcome of the inquiry. KKR now has the opportunity to review the case file, submit a written defence, and request an oral hearing. Should the European Commission conclude that KKR supplied misleading information, it holds the statutory authority under Article 14 of the EU Merger Regulation to impose fines of up to one percent of the company’s global annual turnover. Furthermore, under Article 6, regulators retain the legal power to revoke the original merger clearance decision if approval was obtained on the basis of incorrect information.