Cloudflare has been hit with a €14.2 million fine by Italy’s communications regulator, AGCOM, after refusing to block access to pirate websites via its 1.1.1.1 DNS service. The penalty marks a major escalation in the clash between global tech firms and European regulators over online piracy and digital rights enforcement.
The fine comes under Italy’s Piracy Shield law, which requires internet infrastructure providers to block copyright-infringing content within 30 minutes of notice from rights holders. AGCOM said the sanction represents one percent of Cloudflare’s annual turnover, in line with the law’s provisions.
Brandspur Notes report that the dispute originated from a February 2025 order which Cloudflare declined, citing the risk of service disruption across its DNS system, which handles hundreds of billions of daily requests. The company argued that enforcing the blocks could slow legitimate traffic and wrongly affect lawful websites.
AGCOM rejected Cloudflare’s defence, maintaining that the IP addresses targeted were linked solely to illegal streaming sites and posed no risk to legitimate services. Cloudflare has vowed to challenge the fine in court, with CEO Matthew Prince describing the ruling as an attempt to enforce global censorship without due process or judicial oversight.
Prince warned that Cloudflare could withdraw services from Italy, including removing servers, ending free cybersecurity protections for Italian users, and cancelling planned investments in the country. He also suggested reviewing the company’s pro bono support for the Milano-Cortina Winter Olympics.
The Piracy Shield system has already blocked over 65,000 domain names and 14,000 IP addresses since 2024. Investigations have raised concerns about overblocking, including accidental disruptions to legitimate platforms such as Google Drive, which was inaccessible to Italian users for several hours.
Technology trade groups, including the Computer & Communications Industry Association, criticised the law for targeting DNS resolvers and VPNs, essential tools for free expression, and warned that the 30-minute enforcement window prevents proper verification. Italian ISPs also contend that the law forces them into content policing roles that contradict EU regulations.
The Piracy Shield platform’s ties to Italy’s top football league, one of the few authorized to report piracy, has raised conflict-of-interest and transparency concerns. The ongoing standoff is being closely watched internationally, as it could set a precedent for government control over global internet infrastructure and content moderation.
