Italian court rejects TIM's precautionary appeal in network tariff dispute

MILAN, July 21 (Reuters) - A Milan court has rejected a request for precautionary measures filed by Telecom Italia (TIM) against KKR-backed FiberCop over new tariffs for access to Italy's main fixed-line telecoms network, grid owner FiberCop said.

The dispute centres on the terms governing TIM's access to the fixed-line network it sold to a KKR-led consortium in 2024 under a restructuring aimed at cutting the former phone monopoly's debt.

TIM had asked the court, under a fast-track procedure, to order FiberCop to notify telecoms regulator AGCOM of the economic conditions set out in a long-term service agreement governing TIM's access to the network assets.

In a ruling issued on Tuesday, the Milan court rejected TIM's request, saying the interpretation of the Master Service Agreement (MSA) put forward by TIM was not supported by the contract, FiberCop said in a statement.

TIM declined to comment.

The court also said the prices set out in the MSA did not apply in areas subject to AGCOM's regulatory framework and ruled that FiberCop was not required to make the disclosure sought by TIM, the company said.

"FiberCop welcomes the decision of the Milan court, which fully rejected the precautionary appeal filed by TIM," the company said, adding the ruling confirmed the correctness of its conduct.

FiberCop revised its pricing framework after AGCOM in March classified it as a wholesale-only operator and granted it a lighter regulatory regime.

The decision removed previous cost-oriented price controls across most of Italy, replacing them with a "fair and reasonable" pricing assessment and giving FiberCop greater flexibility in setting tariffs.

Sources previously told Reuters that the new tariff scheme could result in dozens of millions of euros of additional annual costs for TIM. The new pricing framework is due to take effect from September 16 after a transition period.

(Reporting by Valentina ZaEditing by Keith Weir)