KKR accused by EU of misleading regulators over €22bn telecoms deal
Private equity group disputes it gave false or misleading information to Brussels as it sought clearance for FiberCop deal
KKR gave false or misleading information to EU regulators during its €22bn acquisition of Telecom Italia’s fixed-line network in 2024, according to initial findings released by Brussels on Monday.
The US private equity group is being investigated by the European Commission after telecoms operators complained that prices to access the network had been increased since the deal despite assurances given by KKR when it was seeking regulatory clearance for the transaction.
“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 with the third-party operators,” the EU’s competition chief Teresa Ribera said as the Commission released its preliminary findings.
Brussels approved the deal — which envisaged the carving out of the fixed-line network from telecommunications operator Telecom Italia — in 2024 after receiving assurances from KKR that the deal would not worsen wholesale access for rival operators. It opened a fresh investigation last year after complaints by some of those operators.
On Monday, the Commission said it “takes the preliminary view that KKR, at least negligently, submitted incorrect and/or misleading information” about the agreements governing access to the network, including that their existing terms would continue to apply and could not be unilaterally changed.
The Commission said that this information, provided by KKR in response to requests by Brussels, had been “key” in its assessment of the transaction.
KKR said it “strongly disagrees with the European Commission’s preliminary assessment” that it plans to “vigorously challenge”.
“We stand by the accuracy of the information provided during the Commission’s 2024 review,” it added.
Since KKR took control of the FiberCop fixed-line network, relations between the network operator and its largest customers, including Telecom Italia, Fastweb, Vodafone, Iliad and Wind Tre, have become increasingly strained over wholesale access prices and service quality.
Telecom Italia, which now pays to use the network it once owned, also unsuccessfully challenged the increases in court.
FiberCop fiercely rejected claims its service quality had deteriorated, saying that performance was “broadly in line with, and in some cases better than, pre-separation levels”.
It also defended its wholesale pricing framework, arguing its tariffs were subject to regulatory oversight and that it was working with Italy’s telecoms regulator to establish a new pricing structure.
The disputes have added to KKR’s difficulties in turning FiberCop into a profitable standalone business, as it grapples with declining connections, heavy debt and pressure from Rome to combine its infrastructure with state-controlled rival Open Fiber.
There is no legal deadline for the Commission to end its investigation and KKR will now have time to respond to the preliminary findings.