WRITTEN QUESTION P-2127/99

by Bart Staes (Verts/ALE) to the Commission

(18 November 1999)

Subject: Upholding the law of competition in the canvassing for sponsors for EURO 2000

ISL Worldwide has obtained from UEFA almost exclusive rights for promotion and advertising in connection with the EURO 2000 football championships. The marketing firm is making the organisation of an activity in the host cities dependent on financial support for an official sponsor (i.e. one recognised by ISL Worldwide). The host cities are not, however, permitted to make contact on their own initiative with the official sponsors for their activities. ISL Worldwide has nonetheless admitted that these rights have been granted to the official sponsors.

ISL Worldwide's de facto monopoly is inconsistent with European competition law. The firm maintains that the rights relating to the host cities are held by the official sponsors, but forbids the host cities to negotiate directly with them.

1. Is ISL Worldwide's advertising and promotion contract consistent with European competition law, given the de facto monopoly on all promotion and advertising activities connected with the EURO 2000 football championships?

2. What steps will the Commission take to ensure that contracts governing promotion and advertising activities connected with the EURO 2000 football championships are consistent with European competition law?

Answer given by Mr Monti on behalf of the Commission

(3 December 1999)

The European Football Championship in 2000 is being organised by the EURO 2000 Foundation under the auspices of the Union of European Football Associations (UEFA). For the marketing of the event arrangements are made with ISL Worldwide, a leading media and marketing company for large-scale popular sports events with extensive international media exposure. It is also agreed by UEFA, the EURO 2000 Foundation, ISL Worldwide and the eight host cities that all negotiations will take place on an individual basis to cater for the individual needs of each city involved(1).

The agreements mentioned above concerning the marketing of the UEFA European Football Championship in 2000 have not been notified to the Commission, in contrast to the UEFA ticketing arrangements for this event. Until now, no formal complaint has been lodged against these promotion and publicity contracts for EURO 2000, nor against similar contracts in the past. Therefore, it is at present not possible for the Commission to assess whether the contract referred to is in accordance with the European competition rules.

However, the Commission, also taking into account the problems that arose in the framework of the organisation of the football World Cup finals in France in 1998(2), intends to monitor closely the organisation of the EURO 2000 event. Currently, the Commission is examining proposals relating to the sale of match tickets for EURO 2000. The Commission will also gather factual information concerning the marketing contracts of the EURO 2000 event, and will then see whether it will launch an investigation into these marketing contracts.

(1) This is the result of a meeting of 7 October 1999 concerning the marketing rights for the organisation of EURO 2000.

(2) On 20 July 1999, the Commission adopted a formal legal decision (C(99)2295/2) against the local organisers of last year's football World Cup finals tournament in France (Comité Français d'Organisation de la Coupe du Monde de Football 1998, or CFO), following the implementation of discriminatory sales arrangements in relation to entry tickets for finals matches.