It seems that the future of Italy is always going in one direction: down!

If you read the The Android Developer Challenge FAQ and go to the eligibility section, you can see that the challenge is not open to residents of Italy!

From Android Developer Challenge FAQ:

Who’s eligible to participate?

• The Android Developer Challenge is open to individuals, teams of individuals, and business entities. While we seek to make the Challenge open worldwide, we cannot open the Challenge to residents of Cuba, Iran, Syria, North Korea, Sudan, and Myanmar (Burma) because of U.S. laws. In addition, the Challenge is not open to residents of Italy or Quebec because of local restrictions.
• You must be of legal age in your country of residence in order to participate.
• Employees of Google, members of the Open Handset Alliance, or affiliated companies are ineligible to participate.
• For more information, please see the complete set of Terms and Conditions when they become available.

Update:

Actually I found out what are the local restrictions and the most absurd is that if Google wants to open the contest to residents of Italy it would have to guarantee the prize in advance by making a “security deposit” for the entire winning value, which is only $10M…