Brussels preliminarily finds that KKR provided, at least negligently, false or misleading information about the long-term terms of wholesale access to FiberCop’s network as part of the NetCo transaction.

KKR’s responses to information requests allegedly claimed that existing long-term wholesale agreements would stay in place and could not be unilaterally altered by FiberCop, a claim the Commission preliminarily considers potentially incorrect.

The Commission’s current proceeding concludes that KKR provided information about the terms and continuing validity of long-term wholesale agreements, at least negligently.

The case underscores Europe’s intensified scrutiny of ownership structures in critical infrastructure to prevent bottlenecks and protect competition, with wider implications for telecom deals and private equity in the EU.

The charges follow a year-long investigation sparked by complaints from other operators, despite the Commission’s 2024 approval of the deal.

Initial EU inquiries questioned the impact on wholesale broadband access in Italy and raised doubts about possible restrictions on passive infrastructure access after the transaction.

The EU has a history of imposing substantial penalties for misleading regulatory reviews, highlighting the potential severity of the charge against KKR.

No final decision details are provided in the excerpt, and the timeline for EU authorities’ next steps remains unspecified.

Case reference M.12099.AP; more information is available on the European Commission competition website and public case register.

The acquisition, cleared in May 2024 without remedies, combined Telecom Italia’s main and secondary networks under FiberCop, giving KKR exclusive control over NetCo.

KKR notified the Commission on April 19, 2024, of a plan to obtain sole control over NetCo, comprising Telecom Italia’s primary and secondary fixed-line network via FiberCop.

The case centers on whether KKR’s disclosures affected the EU’s assessment of the merger’s competitive impact.