Judgment of the Court of Justice in case C-333/21 | European Superleague Company
FIFA and UEFA rules on prior authorization of club football competitions, such as the Super League, violate EU law
These regulations are contrary to competition law and the free provision of services.
FIFA and UEFA are private law associations whose headquarters are in Switzerland. Its objectives are to promote and control football at the global and European levels. These associations have adopted rules that give them the power to authorize international club football competitions and to exploit the different rights to broadcast these competitions.
Twelve European football clubs 1 intended to launch, through the Spanish company European Superleague Company, a new football competition project, the Super League.
FIFA and UEFA opposed this project. Clubs and players who decided to participate in it were threatened with sanctions.
European Superleague Company brought an action before the Commercial Court No. 17 of Madrid against FIFA and UEFA for considering that their rules on the authorization of competitions and the exploitation of broadcasting rights are contrary to the Law of the Union. Having doubts in this regard, taking into account in particular that FIFA and UEFA hold a monopoly position in this market, the Spanish Court asked questions to the Court of Justice.
The Court of Justice considers that the organization of club football competitions and the exploitation of broadcasting rights are clearly economic activities. Consequently, these activities must respect the rules on competition and freedom of movement, despite the fact that sport, as an economic activity, presents certain specific characteristics, such as the existence of associations endowed with regulatory, control and sanctioning powers. The Court of Justice also notes that, in addition to having these powers, FIFA and UEFA themselves organize football competitions.
The rules of the Fédération internationale de football association (FIFA) and the Union des associations européennes de football (UEFA) that make any project for a new club football competition, such as the Super League, subject to their prior authorization and that prohibit clubs and players participating in it, under penalty of sanctions, are illegal. This is because the powers of FIFA and UEFA are not subject to any criteria that guarantee their transparent, objective, non-discriminatory and proportionate nature.
Likewise, the rules that give FIFA and UEFA exclusive control over the commercial exploitation of the rights derived from these competitions may restrict competition, taking into account the importance that the latter have for the media, consumers and the public. viewers. in the Union.
Next, the Court of Justice rules that, when a company in a dominant position has the power to determine under what conditions potentially competing companies may enter the market, this power, taking into account the risk of conflict of interest that it generates, must be accompanied by criteria that guarantee its transparent, objective, non-discriminatory and proportionate nature. Well, the powers of FIFA and UEFA are not subject to any criteria of this nature. Consequently, FIFA and UEFA are abusing their dominant position.
Likewise, its authorization, control and sanctioning rules, given their arbitrary nature, must be classified as an unjustified restriction on the free provision of services.
However, a competition like that of the Super League project should not necessarily be authorized. Having been asked general questions about the rules of FIFA and UEFA, the Court of Justice does not rule on this specific project in its ruling.
At the same time, the Court of Justice points out that the rules of FIFA and UEFA relating to the exploitation of broadcasting rights can harm European football clubs, all companies operating in the broadcasting media markets and, finally, to consumers and viewers, by preventing them from benefiting from new, potentially innovative or interesting competitions. However, it is up to the Commercial Court No. 17 of Madrid to verify whether these regulations can, however, benefit the different football interest groups, for example, through a solidarity redistribution of the income generated by these rights.