TIM triumphs in latest round of €1 billion government dispute  


News 

A court ruling has upheld a previous decision ordering the Italian government to pay TIM €1 billion in relation to an illegal licence fee collected in 1998 

An Italian appeals court has rejected the Italian government’s request to suspend a €1 billion payment that it owes Telecom Italia (TIM) after a long license fee dispute, the Italian incumbent has announced. 

The Italian telecoms sector was liberalised in 1997 and, the next year, TIM was forced to pay a license fee of around €500 million. This licence fee was issued in contradiction of European Union policies for a liberalised market.   

As such, since 2009, TIM has been attempting to recover this fee, plus revaluation and the accrued interest, arguing that they should not have been charged the fee following the market liberalisation process.  

In April last year, the Rome Court of Appeal ordered the Italian government to pay TIM the fee, and to immediately begin recovering the capital. The amount owed totals €500 million, plus another €500 million in accrued interest. 

The two parties were given until Monday this week to settle the dispute out of court, but an agreement could not be reached. The government had asked that the payment be delayed until it goes to the Supreme Court, which the Italian appeals court rejected 

The decision should allow TIM to claim the funds from the government, regardless of ongoing appeals. 

Nonetheless, the case is not over yet. A final decision will come from Italy’s Supreme Court, expected later this year. For now, TIM can receive the payment, but whether it will ultimately be allowed to keep it is another matter.  

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