Technology, Media & Communications

On March 3, 2020, the TAR Lazio rejected the appeal brought by Open Fiber S.p.A. (“Open Fiber”, an operator active in the development of optical fiber networks based on the Fiber to the Home technology) for the annulment of the commitment decision adopted by the ICA in proceedings against Telecom Italia S.p.A. (“TIM”) and Fastweb S.p.A. (“Fastweb”), concerning the markets for wholesale access to the fixed network and fixed broadband and ultra- wideband retail telecommunications services.[1]

The COVID-19 pandemic has caused significant economic disruption, including supply shortages, cost increases, and liquidity constraints resulting from a prolonged shutdown. As EU Member States and businesses respond to these challenges, and even as lockdown measures are gradually eased, their actions continue to raise potential issues under competition law.

On February 26, 2020, the Court of Rome issued a non-final judgment in an action for damages brought by Siportal S.r.l. (“Siportal”) against Telecom Italia S.p.A. (“TIM”) in follow-on litigation for an alleged abuse of dominance in the provision of wholesale access services,[1] which had been found and fined by ICA in 2013. The Court rejected TIM’s claim that the limitation period had expired, found that TIM had committed an abuse against Siportal, and asked the ICA to assist the Court with respect to the determination of the quantum of damages pursuant to Article 14(3) of Legislative Decree No. 3/2017.[2]

On February 25, 2020, the Italian Competition Authority (the “ICA”) imposed on Telecom Italia

S.p.A. (“TIM”) a fine of approx. € 116.1 million for abusing the dominant position it held both in the national market for wholesale access services to, and in the national market for retail telecommunications services on, the broadband (“BB”) and ultra-broadband (“UBB”) fixed network, in violation of Article 102 of the Treaty on the Functioning of the European Union (the “TFEU”).[1]

On February 19, 2020, the Commission unveiled its strategy to “shape Europe’s digital future.”[1] This strategy identifies three key objectives: invest in technology that works for people (which includes investment in connectivity, discussions over a framework for AI, cybersecurity, and data literacy), develop a fair and competitive economy (which focuses on the creation of a single market for data and the use of competition law policies to level the playing field), and create an open, democratic, and sustainable society.

On February 19, 2020, the FCA expressed its views on the possible lines of approach to enhance antitrust enforcement in the digital sector, both at the EU and national levels. This publication covers questions relating to anticompetitive practices and merger control, and shows the FCA’s willingness to be part of the on-going thinking process launched by the European Commission and many competition authorities and regulators around the world in order to deal swiftly with questions raised by the growth of digital platforms. The FCA will endeavor to update its contribution in light of legislative proposals that could be formulated in the coming months and the reactions that the publication might trigger.