The European Commission has opened a formal investigation to determine whether, during the merger investigation of the acquisition by KKR (KKR) of NetCo, KKR provided incorrect or misleading information to the Commission. NetCo comprises the primary and backbone fixed-line network business of Telecom Italia S.p.A. (TIAOF) i.e. broadband infrastructure connecting the central office to the street cabinet, as well as FiberCop S.p.A. The Commission previously investigated the impact of the transaction on the market for wholesale broadband access services in Italy and concluded that the merged entity would not be able to deteriorate the conditions for access to passive services, or terminate such access, thanks to long-term agreements that FiberCop entered into with several access seekers, including Fastweb and Iliad. Under the investigation, the Commission will assess whether KKR provided incorrect or misleading information about these agreements. The new investigation is separate from the procedure which led to the unconditional approval of the KKR/NetCo transaction under the EU Merger Regulation. The Commission has informed KKR of the opening of a formal investigation and will now carry out its investigation.
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