UPDATE 1-Court rejects Telecom Italia appeal against antitrust fine

Thu May 8, 2014 3:01pm EDT

(Adds Telecom Italia to appeal to higher court)

ROME May 8 (Reuters) - An Italian court rejected an appeal by Telecom Italia against a fine by the national antitrust authority for abusing its dominant market position as owner and manager of Italy's fixed-line telephone network.

The local administrative court of the Lazio region found that the fine of 103.8 million euros ($144.5 million) was justified and adequate, according to its ruling on Thursday.

Telecom Italia reaffirmed that it had behaved correctly and said it would appeal to the State Council, Italy's highest administrative court.

The antitrust authority imposed the fine a year ago after finding the company had limited wholesale and retail access to its fixed-line network, preventing competitors from expanding into phone and Internet services.

($1 = 0.7183 Euros) (Reporting by Paolo Biondi; writing by Naomi O'Leary; editing by Jane Baird)