The EU takes action against KKR: ‘Inaccurate and misleading information regarding the acquisition of Netco’
The investigation was launched in 2025 following reports from third-party operators who complained of unjustified price increases resulting from unilateral amendments to the agreements they had signed
KKR provided ‘inaccurate and misleading’ information during the 2024 investigation into the American fund’s acquisition of NetCo, TIM’s fixed-line network.
The European Commission has reached a preliminary conclusion that KKR provided incorrect and/or misleading information during the investigation conducted by the Commission in 2024 into the acquisition of NetCo, a company based in Italia which provides, amongst other things, wholesale fixed access services on both its copper and fibre networks in Italia. Wholesale broadband access services enable telecoms operators to use FiberCop’s fibre network, together with their own equipment, to offer internet services to their customers. Furthermore, the prices and terms of these services affect the ability of competing operators to offer internet services to consumers.
On 19 April 2024, KKR notified the Commission of its acquisition of control of NetCo, a transaction which brought TIM’s networks under the umbrella of FiberCop, thereby giving KKR sole control of FiberCop itself. During its investigation, the Commission examined the impact of the transaction on the market for wholesale broadband access services in Italia. The prices and conditions of wholesale broadband access can affect competition between internet service providers and, ultimately, customers’ choice and the prices they have to pay.
In particular, the Commission investigated concerns raised by several third-party operators that, following the transaction, FiberCop might restrict access to passive services (i.e. infrastructure).
In light of these risks, the Commission has raised ‘serious doubts’ regarding the transaction. In response to these concerns, KKR explained that the existing long-term agreements, under which FiberCop provided wholesale services to third-party operators, would remain in force. KKR also gave assurances that it would not be able to worsen the terms of wholesale access or terminate access; consequently, on 30 May 2024, the Commission authorised the transaction unconditionally, taking into account KKR’s statements. In particular, it relied on the explanations provided by KKR, according to which the terms of the agreements could not be unilaterally amended by FiberCop and would remain in force unless the parties agreed otherwise.
On 24 July 2025, following complaints from various third-party operators, the Commission launched a formal investigation to assess whether KKR had provided inaccurate and/or misleading information during the Commission’s investigation into KKR’s acquisition of NetCo. The third-party operators allege that, following the transaction, FiberCop unilaterally increased the price paid under existing long-term agreements for access to FiberCop’s fixed broadband network. In today’s Statement of Objections, the Commission takes the preliminary view that KKR, at the very least through negligence, provided inaccurate and/or misleading information on the terms of the existing long-term agreements for wholesale access, including the fact that the existing terms would continue to apply as they could only be amended by mutual agreement with the third-party operators.
