WRITTEN QUESTION E-0466/98 by Allan Macartney (ARE) to the Commission (27 February 1998)

Subject: Competition rules and television rights for the European Football Championships in 2000

The successful Channel 5 bid for the television rights of the European Football Championships in 2000 means that over 1 million Scots (30% of the population) will be unable to enjoy live coverage of Scotland's five qualifying matches. Is the Commission aware that the organization which allocated the contracts - the Luxembourg broadcaster, CLT-UFA - has a 29% shareholding in Channel 5?

Can the Commission indicate the process by which the rights to broadcast live coverage of the European Football Championships in 2000 were awarded to television companies?

Furthermore, has the Commission been asked to rule on whether any aspect of competition rules were breached, as broadcasters in Scotland are reported to have been denied the chance to bid?

Answer given by Mr Van Miert on behalf of the Commission (25 March 1998)

From the information given by the Honourable Member, the awarding of the contract for the television rights to the Championship by the rights holder, the broadcaster CLT-UFA, to Channel 5, in which it holds a stake of 29%, which, it is said, will result in 30% of the population of Scotland being unable to see live coverage of Scotland's five qualifying matches, does not appear to be unlawful.

The organisers of the European football championship are not bound by the rules of public procurement, which require contracts to be put out to tender.

The Commission has received no complaints from disappointed broadcasters that the awarding of the contract breaches the EC Treaty's competition laws. Before any conclusions could be reached on whether there has been an infringement of either Article 85, which deals with agreements restrictive of competition, or Article 86, which deals with an abuse of a dominant position, assessment of the facts relating to the legal and economic circumstances would be required. Even if it could be established that CLT-UFA holds a dominant position in a defined market, the licensing of exclusive broadcasting rights to another company is not likely to give rise to concern under the competition rules unless the duration of the exclusivity granted was excessive or the exclusivity applied to a very large number of rights. Besides it may be that the contract will, in the long run, enhance competition in broadcasting in the United Kingdom since Channel 5 is a relatively new entrant and needs to become established with audiences through showing attractive programming.

Exclusivity of broadcasting rights to important sports events may also be examined under another measure not aimed at addressing competition problems. Article 3a of Directive 89/552/EEC, recently modified by Directive 97/36/EC of the European Parliament and of the Council of 30 June 1997 on the coordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the pursuit of television broadcasting activities ((OJ L 202, 30.7.1997. )), allows Member States to take measures in order to ensure that broadcasters under their jurisdiction 'do not broadcast on an exclusive basis events which are regarded by the Member State as being of major importance for society in such a way as to deprive a substantial proportion of the public in that Member State of the possibility of following such events via live coverage or deferred coverage on free television'. The Directive (recital No 21) makes it plain that these national measures may apply to events that 'are of interest to the general public in the European Union, or in a given Member State, or in an important component part of a given Member State'.

However, the current United Kingdom regulations ('listed events' Section 97 of the Broadcasting Act 1996) do not include Scotland's qualifying matches for the European football championships. The Department of media, culture and sport is responsible for keeping the United Kingdom's list under review.