THE BOTTOM LINE
- Approval Powers Curtailed: Dominant market players, like sports federations or trade associations, cannot use arbitrary approval rules to block new competitors. Their criteria for authorizing new ventures must be transparent, objective, and proportionate.
- Sanctions Are a Risk: Threatening sanctions against businesses or individuals who engage with a competing venture is likely an abuse of a dominant position if the underlying approval rules are not demonstrably fair and non-discriminatory.
- Commercial Rights Unlocked: Rules that give a dominant body exclusive control over the commercial and media rights related to third-party events are an illegal restriction on competition, opening the door for new commercial models.
THE DETAILS
This landmark ruling stems from the conflict between the European Superleague Company and the governing bodies of European football, FIFA and UEFA. The Superleague organisers argued that FIFA and UEFA’s rules—which require their prior approval for any new competition and threaten sanctions against participating clubs and players—constituted an anti-competitive cartel and an abuse of a dominant market position. The Court of Justice of the European Union (CJEU) largely agreed, finding that the existing governance framework effectively stifles competition and restricts the freedom to provide services within the EU single market.
The Court’s reasoning focused on the unchecked power held by FIFA and UEFA. As entities that both regulate and commercially exploit football, their rules for approving new competitions lacked a framework ensuring they were transparent, objective, non-discriminatory, and proportionate. Without such clear and fair criteria, the rules grant them arbitrary control to favour their own commercial interests and prevent any potential competitor from entering the market. This, the Court concluded, is a clear abuse of a dominant position under EU law, as it harms clubs, players, and ultimately, consumers and broadcasters by limiting choice and innovation.
While the judgment does not mean the Superleague project must be approved, its implications extend far beyond the world of sport. This decision is a significant warning to any dominant body, from professional standards organisations to powerful trade associations, that acts as a gatekeeper to a market. If your organisation has rules governing market entry, product approval, or participation, they are now under intense scrutiny. Without a clear, objective, and proportionate framework, these rules—and any sanctions used to enforce them—are vulnerable to legal challenges for violating EU competition law. Businesses must now review their governance structures to ensure they can withstand this new legal precedent.
SOURCE
Source: Court of Justice of the European Union
