European Commission Charges KKR With Misleading Network Deal Regulators

The European Commission has charged the investment firm KKR with misleading regulators during its acquisition of the network belonging to Telecom Italia. The charges follow a year-long investigation sparked by complaints from rival operators who allege that KKR unilaterally increased prices for accessing the fixed broadband network after the transaction closed.

These price hikes contradict assurances KKR provided to the Commission during the approval process for the 2024 deal. The Commission had originally cleared the acquisition based in part on long-term agreements between FiberCop, the last-mile grid unit of Telecom Italia, and competing operators Fastweb and Iliad.

If found guilty of misleading the competition enforcer, KKR faces potential fines of up to 1% of its aggregate annual worldwide turnover.