Cloudflare CEO threatens to pull servers from Italy after AGCOM's €14M fine

• Italy’s telecom watchdog fined Cloudflare €14M for not blocking pirate sites
• The fine was issued under the country's Piracy Shield framework
• Cloudflare CEO Matthew Prince threatens to pull servers from Italy

Cloudflare has launched a blistering attack on Italian authorities after being hit with a massive fine, threatening to strip the country of its servers and withdraw support for the upcoming Winter Olympics.

The web infrastructure company confirmed it has received a fine, approximately €14 million ($17 million), from AGCOM, Italy’s communications watchdog. The penalty was issued because Cloudflare refused to register with Italy’s controversial Piracy Shield framework to block access to copyright-infringing domains via its 1.1.1.1 public DNS resolver.

Cloudflare CEO Matthew Prince did not mince words in his response. Taking to X, Prince blasted the decision as an "unjust" overreach that aligns more with restrictive governments than European democracies.

DNS resolvers like Cloudflare's 1.1.1.1 act as the "phonebook" of the internet. Prince argues that forcing a recursive resolver to block content sets a dangerous precedent, which "risks blacking out any site on the internet," not only in Italy but globally.

While many users can still rely on the best VPN to navigate geo-restrictions and maintain privacy, Italy has previously shared plans to also require VPN to block pirated content under the Piracy Shield's rules.

"Play stupid games, win stupid prizes"

The conflict centers on Italy’s aggressive anti-piracy framework known as Piracy Shield. Introduced to crack down on illegal streams of live sports (specifically Serie A football), the system requires internet service providers (ISPs) and DNS providers to block access to pirate streams within 30 minutes of being notified.

Cloudflare has consistently argued that it is merely a conduit for traffic, not the host of the content. We previously reported on how Italy's Piracy Shield may be breaching EU law, with experts warning it risks overblocking legitimate sites.

"We, of course, will now fight the unjust fine. Not just because it's wrong for us but because it is wrong for democratic values," Prince stated.

The most shocking element of the response was the ultimatum Prince issued to the Italian government. Rather than simply appealing the fine, Cloudflare is also weighing a few options that would see it exit the region entirely.

Cloudflare is indeed considering discontinuing the millions of dollars in pro bono cybersecurity services the company agreed to provide for the upcoming Milano-Cortina Winter Olympics.

The company threatens to discontinue Cloudflare’s Free cybersecurity services for any Italian-based users, too, while removing all servers from Italian cities. It could also terminate all plans to build an Italian Cloudflare office or make any investments in the country.

"Play stupid games, win stupid prizes," Wrote Prince.

Cloudflare vs. Europe

This €14 million fine is the latest escalation in a broader conflict between Cloudflare and European rights holders. As privacy advocates fight to keep the internet open and secure, copyright holders are applying increasing pressure on intermediaries to act as internet police.

We have seen similar tensions in Spain, where Cloudflare and La Liga's conflict deepens over piracy blocking orders. In a legal first, a French Court ordered five of the most popular VPN providers to block access to over 200 illegal sports streaming sites.

As previously told TechRadar, Cloudflare strongly believes that network blocking is never going to be the solution to piracy. The company argues that blocking at the DNS level is ineffective, as users can easily switch to other resolvers, and it risks causing collateral damage by accidentally blocking legitimate websites sharing the same IP resources.

For now, Cloudflare intends to appeal the decision through the courts. "We have and will continue to challenge this decision in the tribunals," Prince stated, signaling that the battle for the open internet in Italy is far from over.

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