TIM fined EUR 116 mln for abusing dominant position in fibre rollout

Italian antitrust watchdog AGCM has fined Telecom Italia (TIM) a total of EUR 116 million for abusing its dominant position in the expansion of fibre-optic broadband services to underserved and rural areas across the country. In a decision issued nearly 3 years after the investigation was launched, Italy’s antitrust authority accused TIM of taking steps to slow down the process of rolling out broadband in so-called digital divide areas by appealing against the tenders launched by the government. “TIM decided an unprofitable change of its coverage plans during the tenders and took legal initiatives aimed at delaying them,” it said, adding that the company carried out a “premeditated anti-competition strategy” to preserve its dominant position and hinder rival investments in ultra-fast broadband.

The fine comes after TIM said it was setting up a company dedicated exclusively to the selective development of new fibre infrastructure in underserved areas of the country to compete with wholesale-only operator Open Fiber, which secured all of the government’s subsidised tenders to build fibre-optic networks in digital divide zones. TIM subsequently suspended the so-called Cassiopea plan and has since pursued alternative strategies, including a possible merger with Open Fiber. 

In a strongly-worded statement, TIM branded the fine as “unwarranted”, adding that it was surprised to have been sanctioned for planning to invest private funds in the modernisation of the country, and pledged to lodge an appeal against the decision in an administrative court.  The company also said AGCM's decision “raises concerns” in the light of the "entirely different view" of TIM's alleged anti-competitive conduct taken by telecommunications watchdog Agcom.