Italy’s telecommunications regulator, the Autorità per le Garanzie nelle Comunicazioni (AGCOM), has slapped U.S. internet infrastructure company Cloudflare Inc. with a €14.2 million (about $15–17 million) fine for failing to comply with national anti-piracy orders under the country’s Piracy Shield regime.
The penalty, representing approximately 1% of Cloudflare’s global annual revenue, marks one of the most significant enforcement actions against a major internet service provider for digital copyright enforcement in Europe.
The dispute stems from a February 2025 AGCOM order requiring Cloudflare to block access via its public 1.1.1.1 DNS resolver to domains and IP addresses identified as distributing pirated content.
Cloudflare refused to implement DNS-level blocking, arguing that the request was technically impractical, disproportionate and risked disrupting legitimate internet traffic, especially given the global scope of its DNS services. AGCOM maintained that the company’s actions violated Italy’s Law 93/2023 on anti-piracy enforcement.
Cloudflare Threatens Major Retaliation
In response, Cloudflare CEO Matthew Prince criticised the fine on social media and suggested Italy lacks legal authority to require censorship-style blocking of internet content. Prince strongly denounced the regulatory approach, calling it devoid of judicial oversight and due process. He warned of potential retaliatory measures that could include withdrawing free cybersecurity services, including those pledged for the Milano-Cortina Winter Olympics, ending support for Italian users, removing servers in Italian cities, and abandoning planned investment in the country.
Italian rights holders, including Serie A and other sport and media groups, have supported AGCOM’s enforcement of Piracy Shield as a necessary tool to combat widespread unauthorized streaming, particularly of live sports content.
