On Monday, the European Commission raised questions regarding the way AGCOM, an Italian telecom watchdog, arrived at the alterations it wanted to implement to wholesale prices of broadband. The Commission said the changes would limit the market's ability to determine prices in Italy.

The Commission added that it cited the European Union's review mechanism. Within the next three months, EU Commision will discuss amendments to AGCOM's proposal.

Last month, AGCOM tentatively permitted lesser 2013 fees for competitors who rent space on Telecom Italia SpA's fixed-line copper network. Telecom Italia's rivals cheered for the move but the company criticized it since it would cut its yearly income by Eur110 million. After AGCOM's decision, Telecom Italia stated that it wanted to gain favorable regulatory terms before proceeding with its plan to spin off its own fixed-line network.

The released statement of EU Commission on Monday expressed concerns about AGCOM's failure to set broadband prices that reflect the most recent market review. "In departing from the approach announced last year for setting access prices in the Italian broadband markets, AGCOM undermines the required regulatory certainty for all market players," Neelie Kroes, EU telecommunications chief, said.