Protection of Pirelli technology: the golden power of the italian government in action

In the context of growing digitization and interconnection, the improper use of advanced technologies can pose a considerable risk not only for user privacy, but also for national security through the possible transfer of strategic information. This is the main reason for the decision taken by the Italian government during the meeting of the Council of Ministers on 15 June 2023. The proposal, put forward by the Ministry of Enterprise and Made in Italy, saw the activation of the special "golden power" powers in the transaction notified by China National Tire and Rubber Corporation, Ltd., relating to the shareholders' agreement on the governance of Pirelli & CSpA

Cyber Tire and its strategic importance

The Cyber Tire sensors embedded in the tires are able to collect a series of vital data, including road conditions, geographical position and the state of the infrastructure. This information is sent to clouds and supercomputers to create, thanks to AI, complex digital models that can be used in futuristic contexts such as smart cities and digital twins. The Government has highlighted the importance of this CYBER technology for a number of sectors, including industrial automation, machine to machine communication, machine learning, advanced manufacturing, artificial intelligence, sensor and actuator technologies, big data and analytics.

The protective measures imposed by the government

In the interest of data protection and national security, the government has established a series of provisions which aim to protect the independence of Pirelli & CSpA and its management, the security of procedures, the protection of strategic information and the know-how how owned by the company. This decision, in addition to reinforcing the commitments made by China National Tire and Rubber Corporation, Ltd., provides Pirelli with a series of tools for safeguarding the strategic asset, including a strategic industrial security clearance that limits access to information . Pirelli will also establish an autonomous organizational unit for safety.

The position of Foreign Minister Antonio Tajani

The foreign minister, Antonio Tajani, commented the decision to exercise the Golden Power on Pirelli as an act of protection and prudence in relation to the national interest. “We have chosen to protect the company that makes sensors in tires that can collect sensitive data,” Tajani said. "The state protects data that cannot be made available to foreigners, in this case Chinese. It is not a hostile act, but one of prudence and protection of the national interest".