20 May, 2017
The Commission said Italy had failed to convince it that devices used to modulate emissions on Fiat Chrysler vehicles outside of narrow testing conditions were justified.
Italy's transport ministry was not immediately available for comment.
"They [Italian authorities] still need to provide additional information that would convince us that the devices used in Fiat models are justified and can, therefore, be considered legal", an European Union source said.
Investigators also said at the time that they would look at whether or not the software in Fiat-Chrysler vehicles constitutes a defeat device.
The Commission accuses Italy of ignoring the installation of so-called cheat devices to manipulate emission levels in diesel cars at Fiat.
Like other car-makers, FCA argued that it was allowed to utilise exemptions in the EU6 test cycle to protect engines or for safety.
The European Commission, the EU's legislative arm, late a year ago opened cases against five countries, including Germany, Spain and Great Britain, for giving their vehicle industry's too much freedom.
Fiat Chrysler Automobiles NV faces similar allegations and in the same federal courthouse as Volkswagen AG, which settled with the federal government in January 2017 and agreed to pay $4.3 billion in civil and criminal penalties.
In March, the commission closed the mediation process, but without determining definitively whether the auto contained an illegal defeat device or not. But once a vehicle is approved in one country, it can be sold throughout the bloc. It could eventually lead to the country being fined by the Court of Justice of the EU.
Trouble's brewing yet again in the European Union over alleged emission-test cheating.
A second report, published officially, did not mention any fraud at FCA, while the United States, Canada and France initiated investigations into the company following their tests to determine whether FCA is illegally using emission control software.
The legal action will point the finger at the Italian transport department for not being vigilant enough in policing FCA emissions in the wake of the Dieselgate crisis that engulfed the Volkswagen Group.