Source: Sharecast
The European Commission unconditionally cleared the takeover of the business in May 2024, but reopened its investigation just over a year ago following complaints from third-party operators, who claimed that prices charged to access TIM’s fixed broadband network had been unilaterally increased following the deal.
The Commission’s probe assessed whether KKR had supplied incorrect and/or misleading information during its original review, and on Monday the regulator published its statement of objections, which included its preliminary view that the firm had indeed misled the regulator.
It said: "The Commission takes the preliminary view that KKR, at least negligently, submitted incorrect and/or misleading information on the terms of its existing long-term agreements for wholesale access, including the fact that their existing terms would continue to apply since they would only be changed by mutual agreement with the third-party operators."
While the statement of objections does not prejudge the final outcome of the probe, it does mean KKR could be facing a hefty fine. Companies found guilty of misleading regulators during reviews of their deals risk penalties of up to 1% of aggregate annual global turnover.
KKR - which now has the opportunity to reply in writing to the Commission and can request an oral hearing to present its arguments - disagreed with the finding and said it would be "vigorously" challenged.
A spokesperson said: "We stand by the accuracy of the information provided during the Commission’s 2024 review of the NetCo acquisition. We will vigorously challenge these preliminary allegations in our response to the statement of objections, while continuing to engage constructively with the Commission.
"The statement of objections is not a final finding of infringement and the Commission’s existing clearance of the transaction remains valid."