The political use of libel suits and the further consolidation of national media interests threaten to undermine press freedom in Italy. In 2001, Italian courts ruled that both journalists and editors could be held responsible in defamation cases if they published potentially libelous statements gathered during an interview. Politicians frequently file libel suits against reporters and press organizations. During 2002, media outlets faced no less than $1.5 billion in potential damages from defamation suits. Also during the year, critics raised concerns about the continued erosion of media plurality in the country. Prime Minister Silvio Berlusconi's substantial family business holdings control Italy's three largest private television stations and one newspaper. In February 2002, his government appointed new members to the governing body of the state television broadcaster (RAI). In June, RAI canceled a popular television program that had frequently been critical of the prime minister. Several months later, RAI banned an unrelated television episode satirizing Berlusconi. By the end of the year, leading journalists at Corriere della Sera, Italy's largest daily, warned that a proposed corporate restructuring threatened to undermine the paper's editorial independence and further diminish media pluralism in the country.

The country's free and independent media institutions are threatened by government interference and the highest level of media concentration in Europe. This trend results from the 20-year failure of political administrations to reform the framework for independent journalism and access to information. In 2003, in response to calls for reform, legislators introduced the controversial so-called Gasparri law, which would have allowed increased cross-ownership of broadcast and print media. Critics asserted, however, that the bill was tailor-made to circumvent a court decision unfavorable to Prime Minister Silvio Berlusconi's media empire, reversing a ruling that would have forced Berlusconi's company to convert its station, Rete 4, to less-profitable satellite television. The bill was approved by parliament but vetoed by President Carlo Ciampi in December. In response, Berlusconi signed a decree allowing Rete 4 to continue terrestrial broadcasting until April 2004. Claims of government interference in reporting have increased. For example, some journalists complained that coverage of Berlusconi's controversial comments to the European Parliament in July had been deliberately "softened and cut." The editor of Corriere della Sera, the major daily, resigned in May amid allegations that he was pressured to quit due to his tense relations with government officials. A journalist in Sicily was attacked by unidentified men in August after publishing articles about local drug trafficking, and shots were fired at the home of a journalist in Sardinia who also appeared to be targeted because of his work. Berlusconi's substantial family business holdings control the three largest private television stations and one newspaper, as well as a significant portion of the advertising market. As prime minister, he is able to exert influence over public-service broadcaster RAI as well, a conflict of interest that is one of the most flagrant in the world. However, the concentration is considerably less in the print media, which continue to be critical of the government.