Sky Pursues €1.9 Billion Damages from TIM, DAZN Over Serie A TV Deal
Sky's Legal Action and Antitrust Context
MILAN, May 6 (Reuters) - Pay-TV operator Sky is seeking up to 1.9 billion euros ($2.2 billion) in damages from Telecom Italia (TIM) and sports streaming platform DAZN, alleging it sustained losses due to a breach of antitrust rules linked to a 2021 deal to distribute Serie A soccer matches, two sources with direct knowledge of the matter said.
Details of the Lawsuit
Sky lodged the lawsuit with a Milan court in recent weeks, the sources said, after a ruling by Italy's antitrust authority in 2023 found the TIM-DAZN agreement on Serie A rights for the 2021-2024 period to be restrictive of competition.
Background: Serie A Rights Deal
In a blow to Sky Italia, DAZN in 2021 secured the right to screen all Serie A soccer matches in Italy over the next three seasons for 2.5 billion euros, proceeding to strike a distribution partnership with TIM.
Sky's Business Interests
Sky offers also broadband services.
Claims and Compensation Sought
Arguing in its claim that the deal between TIM and DAZN was designed to exclude it from the market, Sky is seeking around 1 billion euros in compensation for lost profits, the sources said.
The total rises to as much as 1.9 billion euros when including interest payments and damages linked to brand devaluation, the sources added, speaking on condition of anonymity as the matter is confidential.
All interested parties declined to comment.
Antitrust Ruling and Fines
The Italian antitrust regulator fined TIM and DAZN, respectively, 800,000 euros and 7.2 million euros in 2023 after the two companies amended some clauses in their 2021 agreement granting TIM preferential distribution rights and limiting DAZN's ability to partner with rival telecoms operators.
Appeals and Final Decision
The antitrust ruling became final last year when it was upheld by Italy's top administrative court, following a series of appeals which however led to DAZN's fine being halved to 3.6 million euro in January.
Additional Information
($1 = 0.8513 euros)
(Reporting by Elvira Pollina; Editing by Valentina Za)
