A screen displays the ticker information for Fiat Chrysler Automobiles NV at the post where it's traded on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., January 12, 2016. REUTERS/Brendan McDermid

MILAN (Reuters) - Shares in Fiat Chrysler FCHA.MI fell 2.4 percent in early trade on Wednesday, a day after Reuters reported that the European Union will start legal action against Italy for not policing allegations of emission-test cheating by the car maker.

EU regulators say Italy has failed to convince them that the so-called defeat devices used to modulate emissions on its vehicles outside of narrow testing conditions are justified.