MILAN (Reuters) - Italy’s market watchdog is set to open proceedings to decide whether Telecom Italia (TIM) (TLIT.MI) should be sanctioned over its approval of a joint-venture with Vivendi’s (VIV.PA) pay-TV unit Canal Plus, a source told Reuters on Thursday.
TIM approved the content deal in October, strengthening the link between the phone incumbent and its biggest shareholder.
Following criticism from some of its board members over the decision, the deal received another majority vote from the TIM board earlier this month after an amendment.
TIM was not immediately available for comment.
Separately, a report in Italian daily Il Sole 24 Ore said the company’s auditors are considering whether to challenge the board’s approval of the joint-venture in court.
Reporting by Stefano Rebaudo, writing by Giulia Segreti