An Italian court upheld regulator Consob’s ruling in 2017 that Vivendi effectively controlled Telecom Italia, dismissing appeals by both companies over the decision and a related financial penalty.
Reuters reported an administrative court ruled against the companies, after Vivendi and Telecom Italia challenged Consob’s ruling that the French company was exercising “de facto control” of the operator.
Following its decision, Consob fined Telecom Italia €74.3 million for failing to notify the government that Vivendi, the operator’s largest single shareholder with a 24 per cent stake, was controlling the company.
The fine was suspended in 2018 after Vivendi took legal action against Consob’s decision. Vivendi maintained it complied with applicable laws and regulations.
Vivendi’s challenge to Consob was part of a wider row between the company and the Italian government, which at the time was reportedly was close to implementing measures to limit the French company’s control and protect national interests.
Since 2017, the situation has moved on and Vivendi’s power has reduced dramatically after activist investor Elliott Management took control of Telecom Italia’s board, resulting in a bitter battle for control of the Italian operator.Subscribe to our daily newsletter Back