TIM fails to settle $1bn dispute with Italian govt by deadline

TIM fails to settle $1bn dispute with Italian govt by deadline

Justice and court concept in Italian Republic. Judge hammer on a Italy flag background

Telecom Italia (TIM) could learn as early as this week whether it will receive the €1 billion ($1 billion) owed by the Italian government.

According to legal sources, following the failure of both parties to reach an out-of-court settlement by today’s [20 January 2025] deadline, the government has requested that the payment be postponed until the case is heard by Italy's Supreme Court later this year.

The dispute arises from claims dating back to 1998 over the liberalisation of Italy’s telecom sector, and as a result, the telecom giant and the government were given until 20 January 2025 to negotiate a potential out-of-court settlement.

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However, according to sources, both parties took to court during a closed-door hearing stating that they could not reach an agreement.

The court is now expected to decide on the suspension request as early as this week, sources also claim.

The €1 billion payment stems from an April ruling by a lower court, which sided with TIM and ordered the government to pay the amount, including about €500 million in accumulated interest.

The government appealed the April decision and requested a suspension of the ruling’s effects until the case is heard by Italy’s highest court.

Capacity has contacted TIM for further comment.

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