The European Commission has sent a Statement of Objections to KKR, alleging it provided incorrect or misleading information during its 2024 review of the acquisition of NetCo, a fixed-network business of Telecom Italia, potentially exposing the U.S. private equity firm to a fine of up to 1% of its global turnover.
The European Commission has issued a Statement of Objections to KKR & Co., alleging the company provided incorrect information about long-term wholesale access agreements during its 2024 review of the $19.46 billion acquisition of Telecom Italia’s fixed-network arm, NetCo. The Commission claims KKR misrepresented the terms of these agreements, which govern how third-party telecom operators access FiberCop’s network. The probe, initiated after complaints from rival operators, could lead to a fine of up to 1% of KKR’s annual worldwide turnover or even the revocation of the 2024 merger approval.
Accusations Unfold in KKR Probe
The allegations focus on KKR’s claims during the 2024 merger review that existing long-term access contracts between FiberCop and rivals like Fastweb and Iliad would remain unchanged unless mutually agreed. The Commission now argues these agreements were modified unilaterally after the deal closed, with operators reporting price hikes. The investigation began in July 2025, following complaints that FiberCop had breached its obligations under EU merger rules.
The Commission’s preliminary assessment, outlined in a formal Statement of Objections
dated October 19, 2026, states that KKR may have provided incorrect or misleading information
about the enforceability of these agreements. The firm’s representations were critical to the Commission’s decision to clear the deal unconditionally in May 2024. KKR has denied the allegations, asserting the accuracy of its submissions and vowing to challenge the findings.
KKR notified the Commission of its proposed acquisition of NetCo on April 19, 2024, and the deal was cleared unconditionally on May 30, 2024, 41 days later. The Italian state’s co-ownership of the asset, as noted in the Business Model Analyst, highlights the complexity of such transactions.
Complaints from third-party operators led to a formal investigation on July 24, 2025, after they alleged FiberCop had increased prices under the agreements. The Commission stated that KKR’s information may have been supplied at least negligently
, according to a source.
Fines Could Reach $195 Million
If the Commission finds KKR guilty, the firm could face penalties of up to 1% of its annual worldwide turnover. KKR’s 2025 revenue, reported as $19.46 billion, would place the potential fine at around $195 million. The Commission also retains the authority to revoke the 2024 approval if the decision was based on incorrect information, though such action is rare.
FiberCop’s 2025 numbers, as reported in the source material, reveal its significance as an asset: Revenue of €3.8 billion, EBITDA of €2.0 billion, and organic EBITDAaL of €1.745 billion. These figures highlight the scale of the deal, which involved a €18.8 billion purchase of Telecom Italia’s fixed network. The Commission’s investigation also scrutinized the terms of agreements between FiberCop and operators like Fastweb and Iliad, which were central to the original approval.
The Broader Implications for Mergers in the EU
This case highlights the EU’s strict enforcement of merger control rules, particularly in sectors with significant market power. FiberCop’s dominance—covering 67% of Italy’s fixed broadband lines—makes its contractual terms critical to competition. The Commission’s focus on transparency reflects broader concerns about how firms review regulatory requirements, especially in strategic industries like telecommunications.
The Commission has not yet decided whether to revoke the 2024 approval, a move it has only undertaken once in 36 years. KKR will have the opportunity to respond to the allegations, with a final decision expected after a formal hearing. Until then, the merger remains in effect, but the case serves as a cautionary tale for firms reviewing EU merger regulations.
Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition at the EU Commission, was involved in the process, as noted in source material. The Commission emphasized that the Statement of Objections does not prejudge the final outcome of the investigation. KKR now has the opportunity to examine the Commission’s file, submit a written reply, and request an oral hearing to present its arguments.
The EU Merger Regulation (EUMR) allows fines of up to 1% of a company’s annual worldwide turnover for intentionally or negligently supplying incorrect information. The Commission has imposed substantial penalties for similar violations in recent years, including the €110 million fine against Facebook. KKR’s potential penalty would depend on the Commission’s final findings, which could take months to resolve.
The case also highlights the role of third-party operators in challenging merger approvals. Complaints from rivals like Fastweb and Iliad prompted the Commission’s investigation, as they alleged FiberCop had unilaterally increased prices under existing agreements. The Commission’s focus on these claims reflects its commitment to ensuring fair competition in critical infrastructure sectors.
KKR’s infrastructure arm continues to pursue assets like FiberCop, as evidenced by its August bid for UGI. The firm’s strategy of acquiring assets with existing routes and infrastructure aligns with its broader investment approach. However, the current case highlights the risks of regulatory scrutiny, particularly when post-merger conduct raises concerns about compliance with merger conditions.