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Cloudflare appeals Piracy Shield fine, hopes to kill Italy's site-blocking law

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Why This Matters

Cloudflare is challenging Italy's Piracy Shield law and a hefty fine, arguing that the law's broad blocking requirements threaten global internet freedom and impose disproportionate penalties. This legal battle highlights ongoing tensions between copyright enforcement and internet censorship, with potential implications for how tech companies operate across borders. The case underscores the importance of safeguarding open internet principles amid evolving regulatory pressures.

Key Takeaways

Cloudflare said it has appealed a fine issued by Italy over the company’s refusal to block access to websites on its 1.1.1.1 DNS service. The appeal is the latest step in Cloudflare’s fight against Italy’s Piracy Shield law.

Piracy Shield is “a misguided Italian regulatory scheme designed to protect large rightsholder interests at the expense of the broader Internet,” Cloudflare said in a blog post this week. “After Cloudflare resisted registering for Piracy Shield and challenged it in court, the Italian communications regulator, AGCOM, fined Cloudflare… We appealed that fine on March 8, and we continue to challenge the legality of Piracy Shield itself.”

Cloudflare called the fine of 14.2 million euros ($16.4 million) “staggering.” AGCOM issued the penalty in January 2026, saying Cloudflare flouted requirements to disable DNS resolution of domain names and routing of traffic to IP addresses reported by copyright holders.

Cloudflare had previously resisted a blocking order it received in February 2025, arguing that it would require installing a filter on DNS requests that would raise latency and negatively affect DNS resolution for sites that aren’t subject to the dispute over piracy. Cloudflare co-founder and CEO Matthew Prince said that censoring the 1.1.1.1 DNS resolver would force the firm “not just to censor the content in Italy but globally.”

Piracy Shield was designed to combat pirated streams of live sports events, requiring network operators to block domain names and IP addresses within 30 minutes of receiving a copyright notification. Cloudflare said the fine should have been capped at 140,000 euros ($161,000), or 2 percent of its Italian earnings, but that “AGCOM calculated the fine based on our global revenue, resulting in a penalty nearly 100 times higher than the legal limit.”