Italian watchdog investigates Telecom Italia contract with former network arm

MILAN (Reuters) - Italy's antitrust watchdog has opened an investigation into the business relationship between Telecom Italia (TIM) and FiberCop, the fixed-line network company spun-off from the former phone monopoly.

After the 22 billion euro ($22.90 billion) sale of FiberCop to a consortium led by U.S. investment fund KKR last July, TIM signed a 15-year master service agreement (MSA) to regulate business with its former network company, which offers connectivity capacity to TIM and rivals operating in the Italian telecoms market.

TIM's contract with the operator of its former fixed-line fibre and copper network "contains provisions that could result in an anti-competitive agreement", the competition authority said on Monday.

TIM declined to comment on Monday. It has previously said that the contract meets regulatory standards. A FiberCop representative was not immediately available to comment.

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(Reporting by Cristina Carlevaro and Elvira Pollina; Editing by David Goodman)