EU investigates KKR over telecom deal

EU investigates KKR over telecom deal is profiled by BTW Media because published evidence links it to internet infrastructure, governance, operational dependencies, or market visibility.

• European Commission questions KKR’s statements linked to $26bn FiberCop takeover.
• KKR says it gave accurate details and is working with regulators.

What happened: EU questions KKR’s claims in $26B FiberCop takeover

The European Commission has started an investigation into KKR’s $26 billion acquisition of Telecom Italia’s fixed-line network. The deal involved FiberCop, a unit that controls the last-mile broadband infrastructure in Italy. KKR completed the purchase in 2023 after the Commission approved the deal without conditions. One of the reasons for the approval was the long-term network access agreements that FiberCop had with other telecom companies such as Fastweb and Iliad.

The Commission stated that it will now verify whether KKR provided incorrect or misleading details about these agreements when it applied for clearance. These details helped the Commission make its decision last year. KKR said it had worked with the Commission in good faith. It also stated that FiberCop is still adhering to its commitments to customers and the rules set by AGCOM, Italy’s telecoms regulator. KKR stated that it is ready to work with the Commission and will provide the necessary support during the review.

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Why it’s important

This case raises questions about how companies share information during large mergers. If the Commission determines that KKR misled regulators, it could result in fines or other regulatory actions. KKR may be forced to change how it runs FiberCop or update its agreements with other network users. This could affect many telecom services that rely on FiberCop’s infrastructure in Italy.

The investigation also shows that the European Commission is taking a closer look at the information companies give when they try to merge. In recent years, the Commission has increased efforts to prevent false or incomplete disclosures during merger reviews. It has already fined some companies in other cases. Telecom and tech deals are getting more attention because of their impact on market competition and consumer access.