TIM submits to Italian golden power

Telecom Italia has confirmed it will cooperate with the Italian government following Vivendi’s increased presence and influence at the business.

Last month the Italian government broke out its golden power rule, which will now allow it to exercise influence over the strategic decisions made by TIM. The rule itself allows the government to protect what it deems are strategically valuable assets from external influences, though it is the first time the rule has actually been used.

The influence of Vivendi has been brought into question several times over the last couple of months, though now it appears we have finally found the line. Perhaps now logic will prevail and someone will be able to answer the question as to how an entity which only owns 24% of shares is able to exercise this much influence at TIM.

“The measures adopted are in line with TIM’s strategy, and with respect to these the company manifests its agreement and commitment, confirming the wish to continue to have an open and constructive dialogue with the government and sector authorities which will allow it to combine the interests of the country with those of business activity,” the team said in a statement.

As part of the rule, the government has set aside human, financial and instrumental resources to oversee the situation. In short, TIM will be able to do very little without the Italian government peeking and prying.

It seems either TIM will have the Italian government poking it from Rome, or Vivendi board room muscle relaying orders from Paris. In any case, TIM has apparently lost all abilities to make decisions on its own.

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