KKR (NYSE:KKR) could face a fine of up to 1% of its annual worldwide turnover after European Union antitrust regulators raised objections concerning information supplied during the review of its acquisition of an Italian fixed broadband network business.
The European Commission has issued a Statement of Objections to the US private equity firm, setting out its preliminary assessment that KKR provided incorrect or misleading information about existing wholesale access agreements during the merger review process.
The Commission said it considers that the information may have been supplied at least negligently. The allegations relate to the regulatory approval granted for KKR’s acquisition of NetCo on 30 May 2024.
The issuance of a Statement of Objections does not establish that KKR breached EU merger rules, and the Commission has emphasised that its preliminary findings do not prejudge the outcome of the investigation.
Commission Questions Information on Wholesale Access Agreements
The investigation concerns representations made by KKR about long-term agreements governing access to FiberCop’s fixed broadband infrastructure.
During the merger review, KKR informed the European Commission that existing agreements under which FiberCop provided wholesale network services to third-party telecommunications operators would remain in effect following the acquisition.
According to the Commission, KKR also stated that FiberCop would not be able to modify those agreements unilaterally.
The regulator said it relied on this information when assessing the transaction and subsequently approved KKR’s acquisition of NetCo without imposing conditions.
The Commission is now examining whether the information provided accurately reflected the contractual arrangements governing access to the network.
Its preliminary assessment is that KKR may have supplied incorrect or misleading information concerning the terms of those agreements.
Complaints Follow Alleged Increases in Broadband Access Charges
The regulatory investigation followed complaints from third-party telecommunications operators using FiberCop’s network.
According to the Commission, these operators alleged that FiberCop increased the prices they were required to pay for wholesale access to its fixed broadband infrastructure after completion of the acquisition.
The complainants argued that the changes were introduced unilaterally, despite the contractual arrangements described to the Commission during its merger review.
The allegations raised questions about whether the information on which the Commission based its original clearance decision was complete and accurate.
Following the complaints, the regulator opened a formal investigation on 24 July 2025.
The current proceedings focus on the accuracy of the information provided by KKR during the merger review, rather than establishing whether the alleged pricing changes independently constitute an infringement of competition law.
EU Merger Rules Allow Financial Penalties
Under the European Union’s merger control regulations, companies are required to provide accurate and complete information when responding to requests from the European Commission.
The rules allow the regulator to impose fines of up to 1% of a company’s aggregate annual worldwide turnover if it determines that incorrect or misleading information was supplied intentionally or negligently.
Any potential penalty against KKR would depend on the Commission’s final findings.
The regulator also has the authority to revoke a merger clearance decision if that approval was based on incorrect information for which one of the merging parties was responsible, or if the clearance was obtained through deceit.
The availability of these measures does not mean that either a financial penalty or a withdrawal of the original approval will necessarily follow.
The Commission has not announced a final determination concerning KKR’s conduct or indicated what action, if any, it intends to take.
KKR Has Opportunity to Respond to Allegations
The Statement of Objections represents a formal stage in the Commission’s investigative procedure.
KKR is entitled to examine the evidence contained in the Commission’s case file and submit a written response to the allegations.
The company may also request an oral hearing to present its position.
These procedural rights allow KKR to challenge the regulator’s preliminary assessment before any final decision is reached.
The European Commission has stated that sending the Statement of Objections does not prejudge the investigation’s outcome.
There is no statutory deadline for the Commission to complete proceedings of this type.
Original Merger Clearance Remains Central to Investigation
The case concerns the information used by EU regulators when they approved KKR’s acquisition of NetCo without conditions in May 2024.
The Commission’s original assessment took account of assurances that existing long-term wholesale access arrangements would continue and could not be changed unilaterally by FiberCop.
Subsequent complaints from network operators prompted the regulator to reconsider whether those representations were accurate.
The investigation will determine whether KKR breached its obligations under EU merger rules and whether any enforcement measures are warranted.
Until the Commission reaches a final decision, the allegations remain preliminary, and no financial penalty or revocation of the merger approval has been established.