The European Commission has launched a formal investigation to determine whether U.S. private equity firm KKR provided incorrect or misleading information in the context of its €22 billion ($26 billion) acquisition of Telecom Italia’s fixed-line network, the EU executive announced on Thursday.
The acquisition, approved unconditionally by the Commission in May 2024, was facilitated in part by existing long-term agreements between FiberCop—Telecom Italia’s last-mile grid subsidiary—and telecom operators Fastweb and Iliad. These agreements were a central factor in the Commission’s clearance of the transaction, as they were seen as preserving competitive dynamics in the Italian telecommunications market.
“Under the investigation opened today, the Commission will assess whether KKR provided incorrect or misleading information about these agreements,” the Commission stated. Providing incomplete, incorrect, or misleading information during merger reviews can constitute a serious breach of EU merger control rules.
In response, KKR issued a statement asserting that it had acted transparently during the merger review process. “As part of the transaction clearance, we worked with the European Commission in good faith and provided specific and accurate information. FiberCop continues to adhere to customer commitments and economic regulation governed by AGCOM,” the company said, referencing Italy’s national communications authority.
The Commission has intensified scrutiny in recent years over the integrity of information submitted during merger control proceedings. It has not hesitated to impose substantial fines on companies found to have misled regulators.
This case could be another significant test of the Commission’s enforcement powers under the EU Merger Regulation. No conclusions have been drawn yet, and the investigation remains ongoing.
