WRITTEN QUESTION E-1912/02

by Robert Goebbels (PSE) to the Commission

(2 July 2002)

Subject: FIFA and UEFA's de facto monopoly

The Commission and the European Union of Football Associations (UEFA) recently reached agreement on a set of new rules governing live broadcasting rights with regard to major football matches. According to Commissioner Monti, the agreement would be good news for clubs, for broadcasters and for consumers.

However, consumers are having to depend more and more on the good will of certain broadcasters or on the latter's ability to finance the broadcasts from commercial advertising. As the FIFA World Cup shows, more and more matches are becoming available only on pay-channels.

Nevertheless, most of the infrastructure used by football clubs was funded from the public purse. Security at matches has to be provided by central government or by local authorities. In other words, the costs are borne by the public, but the profits go into private pockets. Uninformed by any sporting spirit, these economic entities are exploiting the public's infatuation with football as a de facto monopoly which enables them to rake in the profits without doing anything in return for the central government or local authorities which have to bear any collateral expenditure.

What measures will the Commission take to put an end to this manifest abuse perpetrated by the bosses of FIFA (who rule like potentates over a multinational undertaking which is not subject to any public scrutiny), of UEFA and of the major football clubs? Should not minimal public service rules be imposed with respect to sporting events such as the World Cup and the European Cup?

Answer given by Mr Monti on behalf of the Commission

(31 July 2002)

The Honourable Member seems to be referring to the case regarding the joint selling of the media rights of the Union of European Football Associations (UEFA) Champions League where the Commission has issued a statement of objections against UEFA. The Commission's procedure has caused UEFA to propose a number of remedies designed to respond to the Commission's competition concerns. These remedies are currently under examination.

In analysing the restrictive effect of the arrangement, the Commission examines whether the conditions for an exemption are possible. The Commission wishes to ensure that the very important media rights of football tournaments are not sold in a way that harms competition on media markets and which, as a consequence, harms viewers. However, Community competition law is neutral as to on which market the owner of the rights chooses to sell the TV rights. As a matter of competition law, the Commission does not give any preferential treatment of the market for pay-TV over the market for free-TV or vice-versa. However, the Television without Frontiers Directive provides that Member State may draw up a national list of events of major importance to society, which must be broadcast on TV channels accessible to the large majority of the population in effect on free-TV. In Member States where such lists exist, they often include UEFA and the International Federation of Football Association (FIFA) football.

Before giving its final approval of the settlement regarding the UEFA Champions League, the Commission wishes to give third parties the opportunity to comment on the result and it will publish a notice in the Official Journal describing the new arrangements and inviting third parties to submit comments on the new arrangements.