the source is in italian, couldn't find one in english that describes how it works but you can just translate it and it's more or less readable, from the source (google translated):
"On the platform, those who hold the rights, for example Sky and Dazn for football, upload the IP addresses or the Fully qualified domain name (Fqdn) , i.e. an unambiguous domain name that allows an online resource to be identified without a doubt, pirate sites that are broadcasting content without authorization , together with forensic evidence certifying the violation . Those who make the request have a few minutes to correct any errors, after which Piracy Shield generates a ticket and includes the report in the list of incriminated sites. Telecommunications and network operators draw on this, and have 30 minutes to block them. The process can also be automatic.
In the case of the Aiip trial, for example, the association has developed an interface, which it will provide to its members, which connects regularly, with a frequency of 1-2 minutes, to Piracy shield , checks the update of the list of sites to be blocked and, if there are new ones, executes the request. The platform also contains a white list of resources that, on the contrary, must not be reset. Piracy Shield is located on the Microsoft Azure cloud and can be reached by accredited operators only via VPN (virtual private network). At the moment the project aims to tackle piracy of sports content"