Cloudflare Appeals €14 Million Agcom Fine Over Italy's Piracy Shield Blocking Scheme

Cloudflare has formally appealed a €14.2 million ($16.4 million) fine imposed by Italy's communications regulator AGCOM for failing to comply with the country's Piracy Shield anti-piracy blocking scheme.

“At the end of January, AGCOM fined Cloudflare a substantial amount, about €14 million”

Affaritaliani.it

The American internet infrastructure company filed its appeal on March 8, 2026, challenging both the massive penalty and the legality of the Piracy Shield system itself.

Affaritaliani.it

AGCOM had concluded in January 2026 that Cloudflare possesses the technological expertise and resources to implement the blocking measures, rejecting the company's arguments that complying would break its service.

The regulator imposed the fine representing 1% of Cloudflare's global revenue, noting that Italian law allows for a maximum of 2%.

Italy's Piracy Shield is an automated anti-piracy platform launched in 2024 to combat pirated streams of live sports events, particularly Serie A football matches.

The controversial system was designed to require network operators to block domain names and IP addresses within 30 minutes of receiving a copyright notification.

ANSA

Cloudflare revealed that Piracy Shield was 'donated' to the Italian government by SP Tech, an arm of the law firm that represents several of the scheme's direct beneficiaries including Serie A.

The American company argues that the blocking regime essentially operates as a 'black box' that allows private entities to prioritize their economic interests over those of Internet users by forcing global infrastructure providers to block large swaths of the Internet without oversight, transparency, or due process.

The Piracy Shield scheme has created significant collateral damage through massive overblocking of legitimate websites and services.

“Cloudflare said it has appealed a fine issued by Italy over the company’s refusal to block access to websites on its 1”

Ars Technica

Multiple reports have documented how the anti-piracy system has blocked access to government websites, educational resources, and even Google Drive.

This indiscriminate blocking was confirmed by a University of Twente study last September, which concluded that Piracy Shield is linked to 'significant collateral damage to legitimate infrastructure' and may pose 'a potential threat to national security.'

Despite clear evidence of these failures and critique from European Commission officials, AGCOM not only failed to change course but actually broadened the scheme to include DNS resolvers and VPNs - services closely associated with privacy and free expression.

Cloudflare's appeal challenges both the amount of the fine and the fundamental legality of the Piracy Shield system.

The company argues that AGCOM calculated the fine based on its global revenue rather than Italian earnings, resulting in a penalty nearly 100 times higher than the legal limit of 140,000 euros ($161,000).

Teleborsa

Cloudflare co-founder and CEO Matthew Prince emphasized that censoring the 1.1.1.1 DNS resolver would force the firm 'not just to censor the content in Italy but globally.'

Additionally, the company denounces an infringement of personal data protection incompatible with the EU GDPR and a risk to users' cybersecurity, while also criticizing the mechanism for generating indiscriminate blocks without prior judicial review or adversarial proceedings.

The outcome of Cloudflare's appeal could have far-reaching implications for internet governance and anti-piracy enforcement in Europe.

“Launched in 2024, Italy’s elaborate ‘Piracy Shield‘ blocking scheme was billed as the future of anti-piracy efforts”

TorrentFreak

The company has threatened to withdraw its servers from Italy, potentially impacting critical infrastructure.

TorrentFreak

This legal battle represents a broader conflict between internet infrastructure providers and regulatory approaches to copyright enforcement.

Cloudflare stresses that the case is about more than money, as it believes the Piracy Shield blocking regime puts the open Internet at risk.

The appeal will likely address transparency issues, the scheme's disproportionate impact on legitimate services, and whether a handful of private entities can force global infrastructure providers to block large portions of the Internet without proper oversight.