The Open Fiber venture of Italian utility giant Enel and state lender CDP is seeking EUR 1.5 billion in damages from Telecom Italia (TIM) for the latter’s alleged abuse of its dominant position in the broadband market, according to two unnamed sources cited by Reuters. The damages claim was reportedly brought after Italy’s competition watchdog AGCM fined TIM EUR 116 million in March for carrying out a “premeditated anti-competition strategy” to preserve its status in the ultra-fast broadband sector.
In April, Open Fiber CEO Elisabetta Ripa confirmed that the wholesale operator would indeed be seeking damages from TIM even though the companies have been officially discussing ways of integrating their respective fibre-optic networks since June 2019. Last month the Iliad Italia subsidiary of France’s Iliad brought legal action before a Milan court against TIM and its Kena Mobile brand for allegedly hindering its entry and consolidation in the Italian mobile market.
The report also indicates that an unnamed source close to TIM described Open Fiber’s claim as ridiculous, adding that TIM was in turn preparing its own damages suit against Open Fiber for “unfair competition”, for which it was seeking “an equal or an even higher damages compensation”.
