Adds details on potential damages split between TIM and DAZN from TIM's documents, paragraph 8

By Elvira Pollina

MILAN, May 6 (Reuters) - Pay-TV operator Sky is seeking up to 1.9 billion euros ($2.2 billion) in damages from Telecom Italia (TIM) TLIT.MI and sports streaming platform DAZN, TIM said on Wednesday, confirming an earlier Reuters report.

Sky alleges in its judicial claim that it suffered losses due to a breach of antitrust rules linked to a 2021 deal between TIM and DAZN to distribute Serie A soccer matches, TIM said in documents released with its first-quarter earnings.

Sky lodged the lawsuit with a Milan court in recent weeks, two sources told Reuters earlier on Wednesday, after a ruling by Italy's antitrust authority in 2023 found the TIM-DAZN agreement on Serie A rights for the 2021-2024 period restricted competition.

In a blow to Sky Italia, DAZN in 2021 secured the right to screen all Serie A soccer matches in Italy over the next three seasons for 2.5 billion euros, proceeding to strike a distribution partnership with TIM.

Sky offers also broadband services.

Arguing in its claim that the deal between TIM and DAZN was designed to exclude it from the market, Sky is seeking 1.1 billion euros in compensation for lost profit, TIM said.

The total could rise to as much as 1.9 billion euros when including 500 million euros in interest payments and up to 380 million euros in damages linked to brand devaluation, TIM said, adding that the damage claim is based on confidential, Sky‑commissioned expert assessments.

In the documentation, TIM also said that any compensation would be shared between TIM and DAZN, according to criteria yet to be defined.

All interested parties declined to comment.

TIM said it had been informed of Sky's lawsuit on March 25 and expected the key hearings on the case to take place in the last quarter of the year.

The Italian antitrust regulator fined TIM and DAZN, respectively, 800,000 euros and 7.2 million euros in 2023 after the two companies amended some clauses in their 2021 agreement granting TIM preferential distribution rights and limiting DAZN's ability to partner with rival telecoms operators.

The antitrust ruling became final last year when it was upheld by Italy's top administrative court, following a series of appeals which however led to DAZN's fine being halved to 3.6 million euros in January.

($1 = 0.8513 euro)