By Elvira Pollina and Giuseppe Fonte

MILAN (Reuters) -KKR-backed telecom network firm FiberCop has filed a complaint with the European Commission, alleging that Italy provided state aid to rival Open Fiber in breach of EU competition rules, three sources with knowledge of the matter said.

The complaint, which alleges Italy altered competition in its ultra-broadband market, escalates a standoff between KKR and the Rome government, which is the U.S. fund’s co-shareholder in Fibercop.

In an e-mailed statement to Reuters, FiberCop confirmed it had filed a complaint with the EU, without providing details.

“FiberCop brought to the attention of the European Commission a number of circumstances it believes warrant scrutiny from a competition standpoint.”

Italy’s Treasury, KKR and Open Fiber a

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