Italy has slapped Cloudflare with a hefty fine of 14.2 million euros for refusing to block access to pirate sites on its 1.1.1.1 DNS service, according to the country's communications regulatory agency, AGCOM. The company, however, says it will fight the penalty and is considering taking drastic measures, including removing all its servers from Italian cities.
The fine was issued under Italy's controversial Piracy Shield law, which requires companies like Cloudflare to disable DNS resolution of domain names and routing of traffic to IP addresses reported by copyright holders. The law provides for fines up to 2 percent of a company's annual turnover, with AGCOM applying a fine equal to 1 percent.
Cloudflare had argued that installing a filter on its DNS system would significantly increase latency and negatively affect DNS resolution for sites that aren't subject to the dispute over piracy. However, AGCOM rejected this argument, saying the required blocking would impose no risk on legitimate websites because the targeted IP addresses were all uniquely intended for copyright infringement.
The Piracy Shield law was adopted in 2024 with the aim of tackling live sports piracy. However, critics say it has a number of concerns that can inadvertently affect legitimate online services, particularly due to the potential for overblocking.
In September 2025, researchers found "hundreds of legitimate websites unknowingly affected by blocking," with unknown operators experiencing service disruption and illegal streamers continuing to evade enforcement by exploiting the abundance of address space online. This is described as a conservative lower-bound estimate.
Google has also been in the crosshairs of the Piracy Shield law, with AGCOM ordering it to block pirate sites at the DNS level. The Computer & Communications Industry Association (CCIA) has criticized the law, saying that Italian authorities have included virtual private networks and public DNS resolvers in the Piracy Shield, which are services fundamental to the protection of free expression.
The CCIA has also questioned the 30-minute blocking window, saying it leaves extremely limited time for careful verification by ISPs that the submitted destination is indeed being used for piracy purposes. The trade group argues that the law requires "filtering and tasks that collide with individual freedoms" and is contrary to European legislation that classifies broadband network services as mere conduits that are exempt from liability.
Cloudflare CEO Matthew Prince has vowed to fight the fine, saying that Cloudflare will "not be intimidated by this unjust fine." He also stated that the company is considering taking drastic measures, including discontinuing pro bono cyber security services for Italian users and removing its servers from Italian cities. The decision is seen as a response to what Prince describes as a "shadowy, European media cabal" attempting to dictate what is and is not allowed online.
The fine was issued under Italy's controversial Piracy Shield law, which requires companies like Cloudflare to disable DNS resolution of domain names and routing of traffic to IP addresses reported by copyright holders. The law provides for fines up to 2 percent of a company's annual turnover, with AGCOM applying a fine equal to 1 percent.
Cloudflare had argued that installing a filter on its DNS system would significantly increase latency and negatively affect DNS resolution for sites that aren't subject to the dispute over piracy. However, AGCOM rejected this argument, saying the required blocking would impose no risk on legitimate websites because the targeted IP addresses were all uniquely intended for copyright infringement.
The Piracy Shield law was adopted in 2024 with the aim of tackling live sports piracy. However, critics say it has a number of concerns that can inadvertently affect legitimate online services, particularly due to the potential for overblocking.
In September 2025, researchers found "hundreds of legitimate websites unknowingly affected by blocking," with unknown operators experiencing service disruption and illegal streamers continuing to evade enforcement by exploiting the abundance of address space online. This is described as a conservative lower-bound estimate.
Google has also been in the crosshairs of the Piracy Shield law, with AGCOM ordering it to block pirate sites at the DNS level. The Computer & Communications Industry Association (CCIA) has criticized the law, saying that Italian authorities have included virtual private networks and public DNS resolvers in the Piracy Shield, which are services fundamental to the protection of free expression.
The CCIA has also questioned the 30-minute blocking window, saying it leaves extremely limited time for careful verification by ISPs that the submitted destination is indeed being used for piracy purposes. The trade group argues that the law requires "filtering and tasks that collide with individual freedoms" and is contrary to European legislation that classifies broadband network services as mere conduits that are exempt from liability.
Cloudflare CEO Matthew Prince has vowed to fight the fine, saying that Cloudflare will "not be intimidated by this unjust fine." He also stated that the company is considering taking drastic measures, including discontinuing pro bono cyber security services for Italian users and removing its servers from Italian cities. The decision is seen as a response to what Prince describes as a "shadowy, European media cabal" attempting to dictate what is and is not allowed online.