The Italian Competition Authority has initiated a preliminary investigation for a possible violation of Article 101 of the Treaty on the Functioning of the European Union (TFEU) (prohibition of agreements which restrict competition) against Telecom Italia S.p.A. and Fastweb S.p.A., following the notification by which these companies informed the Authority that they had signed an agreement for the establishment of a cooperative joint venture named Flash Fiber S.r.l.
Flash Fiber is a company jointly controlled by both Telecom Italia and Fastweb, and will be aimed at the construction of FTTH (Fiber To The Home) networks in the 29 main Italian cities.
In light of the deep technological and economic evolution in the fixed telecommunications industry, the agreement signed by Telecom Italia and Fastweb, although promoted, as declared, to allow a more efficient development of innovative technology infrastructures, could have the potential to prevent, restrict or significantly distort competition in two national markets: the market for fixed wholesale access and the market for broadband and ultrafast-broadband retail telecommunication services. The agreement in question, involving significant coordination between Fastweb and Telecom Italia in strategic choices regarding fixed broadband and ultrafast-broadband networks, could lessen the intensity of static and dynamic competition, as it involves the two main vertically integrated operators in the industry.
During the course of the investigation, all the arguments and elements invoked by the Parties will be assessed as regard the compliance with the conditions capable of justifying derogation pursuant to Article. 101.3 of the TFEU.
On 9 February 2017, the officers of the Italian Competition Authority, with the assistance of the Special Antitrust Unit of Guardia di Finanza, carried out a series of inspections at the headquarters of the companies involved in the proceedings, believed to be in possession of elements useful for the purposes of the preliminary investigation initiated.

Rome, 9 February 2017