Cloudflare Threatens Italy Exit After €14 Million Piracy Shield Fine
Italy’s communications regulator AGCOM has fined Cloudflare approximately €14 million, equal to 1 percent of its global annual revenue, for failing to comply with blocking orders issued under Italy’s anti‑piracy system known as Piracy Shield. The measure requires intermediaries, including DNS and infrastructure providers, to block IP addresses and domains allegedly facilitating copyright infringement following requests approved by AGCOM.
The case raises structural concerns about the operation of Piracy Shield. Orders are issued through an automated process, require compliance within 30 minutes, and are not subject to prior judicial authorization. Appeals and reversals exist but are slower and opaque. Due to shared IP addresses, DNS infrastructure, and network address translation, blocking orders risk over‑blocking lawful content and affecting users and services far beyond the targeted pirate streams, including outside Italy.
Cloudflare’s CEO publicly criticized the regime, arguing that it lacks due process, transparency, and territorial limits. He stated that the orders would require global DNS and IP blocking, potentially impacting lawful services worldwide. Cloudflare has announced it will appeal the fine and warned it may withdraw free cybersecurity services in Italy, including pro bono protection for the Milano‑Cortina Winter Olympics, shut down Italian infrastructure, and halt planned investments.
From an EU digital law perspective, the dispute highlights tensions between copyright enforcement, intermediary liability, and fundamental rights under EU law. Questions arise regarding proportionality, judicial oversight, cross‑border effects, and compatibility with the Digital Services Act framework. The case may become a reference point for how far national regulators can go in imposing technical blocking obligations on global infrastructure providers.
