The European Commission has launched a formal investigation into the US private equity firm KKR over allegations that it provided false or misleading information during its €22 billion acquisition of Telecom Italia’s fixed-line network in 2024. The inquiry follows complaints from rival telecom operators regarding increased wholesale access prices since the transaction, contradicting assurances KKR gave during regulatory approval.
Brussels approved the deal, which involved separating the fixed-line network from Telecom Italia, based on commitments from KKR that wholesale access terms for other operators would remain unchanged unless mutually renegotiated. However, the Commission’s initial findings suggest that KKR, at a minimum negligently, submitted inaccurate information about maintaining long-term access agreements with third-party operators. Teresa Ribera, head of EU competition, noted that this information was “key” to the Commission’s assessment of the transaction.
The investigation arose after telecom companies such as Fastweb, Vodafone, Iliad, and Wind Tre raised concerns last year about price hikes and service quality deterioration following KKR’s takeover of the FiberCop network. FiberCop, the entity managing the fixed-line infrastructure, has denied claims that service quality worsened, asserting that performance remains comparable or improved relative to pre-acquisition levels. The company also defended its wholesale pricing, emphasizing that tariffs are subject to regulatory supervision.
Relations between KKR and major FiberCop customers have reportedly become strained amid these disputes. Telecom Italia itself has challenged the price increases in court without success. The situation has complicated KKR’s efforts to develop FiberCop into a profitable standalone business as it faces challenges including falling customer connections, significant debt, and pressure from the Italian government to merge FiberCop with state-owned Open Fiber.
KKR has strongly rejected the European Commission’s preliminary conclusions and intends to contest the allegations vigorously. The firm maintains that it provided accurate information during the 2024 regulatory review and expressed willingness to continue constructive engagement with Brussels.
The Commission’s investigation remains ongoing, with KKR allowed time to respond to the preliminary findings before any final determination.