Notice published pursuant to Article 19(3) of Council Regulation No 17 concerning Cases COMP/35.163 — Notification of FIA Regulations, COMP/36.638 — Notification by FIA/FOA of agreements relating to the FIA Formula One World Championship, COMP/36.776 — GTR/FIA ' others (Text with EEA relevance)
Date: 2001-06-13
Institutions: European Commission
Subjects: exchange of information, international organisation, motor car, sporting event, sports body

13.6.2001

EN

Official Journal of the European Communities

C 169/5

Notice published pursuant to Article 19(3) of Council Regulation No 17 concerning Cases
COMP/35.163 (cid:151) Notification of FIA Regulations, COMP/36.638 (cid:151) Notification by FIA/FOA of
to the FIA Formula One World Championship, COMP/36.776 (cid:151)
agreements

relating

GTR/FIA & others

(2001/C 169/03)

(Text with EEA relevance)

1. THE CASES

On 22 July 1994, the FØdØration Internationale de l’Automobile
(FIA) notified its regulations to the Commission under Regu-
lation 17 (1). Subsequently, the agreement between FIA and
International Sportsworld Communicators Ltd (ISC) relating
to the marketing of broadcasting and media rights to certain
FIA championships (except
formula one) was also notified
(Case COMP/35.613). The commercial arrangements relating
to the FIA Formula One World Championship were notified
separately (Case COMP/36.638 (cid:151) FIA/FOA) by the FIA and
Formula One Administration Limited ((cid:145)FOA(cid:146)) on 5 September
1997.

The Commission published notices (2) summarising the notified
agreements and inviting third party comments.

In 1997 and 1998, the Commission received three complaints
concerning these notifications. The complaints were lodged by:
(i) the AE TV Cooperation GmbH (Case COMP/36.520 and
Case COMP/37.319), a television company whose complaint
(ii) the
focused mainly on the European Truck Racing Cup;
GTR Organisation (Case COMP/36.776), which organised and
promoted an international series for (cid:145)Grand Touring(cid:146) (GT) cars.
All three complaints were subsequently withdrawn, and the
cases closed.

On 29 June 1999,
the Commission issued a Statement of
Objections. The parties submitted their written responses to
the Statement of Objections in February 2000.

On 26 April 2000,
the FIA and FOA submitted several
proposals to modify substantially the notified arrangements
in order to meet the concerns expressed by the Commission
in the Statement of Objections. Subsequently, the parties filed
further submissions, the latest on 12 January 2001. This notice
describes the FIA rules and the commercial arrangements
between FIA, FOA and ISC which will result from the above-
mentioned proposals, modifications and submissions by the
parties.

2. THE PARTIES

FIA was founded in France as a non-profit-making association.
It has at present more than 162 members (29 from EU
countries). These are national automobile clubs, associations,
FIA
and national motor

(ASNs). The

federations

sport

members organise and regulate motor sport in their respective
territories.

Its
ISC is a company founded by Mr Bernie Ecclestone.
television rights to
principal activity was the marketing of
FIA international series other than F1.
In spring 2000, Mr
Ecclestone sold the company to Mr David Richards and ISC
is now charged with the promotion of the FIA World Rally
Championship and the FIA Regional Rally Championships.

for

companies

the purposes of

FOA/FOM,
controlled by Mr Ecclestone, are
engaged in the promotion of the FIA Formula One Cham-
pionship. The term FOA/FOM,
this
notice, includes FIA Formula 3000 International Championship
Limited, an Ecclestone family trust interest, which is engaged in
the promotion of the FIA F3000 Championship. The 1998
Concorde Agreement provides that FOA is the Commercial
Rights Holder to the FIA Formula One Championship. FOA
is thus responsible for televising and generally commercialising
the Championship. On 28 May 1999, FOA changed its name to
Formula One Management Limited (FOM) which manages the
rights. The commercial rights themselves were taken over by
an associated company, now also named FOA.

3. PRODUCTS/SERVICES

These cases concern the following services and products: (a) the
organisation of cross-border motor
the
the certification/licensing of
promotion of such series;
(d) the
motor car sport events’ organisers and participants;
broadcasting rights of the FIA Formula One Championship.

series;

sport

(b)

(c)

4. THE NOTIFIED ARRANGEMENTS

4.1. The FIA rules

The rules, which are the subject of the notification, comprise
five sets of documents (3):

(i) The Statutes of the FIA, ((cid:145)the Statutes(cid:146))

The Statutes are the principal constitutional document of
FIA. They record the objectives of FIA; the persons eligible
to become members; the rights and obligations attaching
to membership; the role of FIA and its members in relation
to motor sport; the structure and the organs of FIA and its
sources of income.

(1) OJ 13, 21.2.1962, p. 204/62.
(2) OJ C 361, 27.11.1997, p. 7 related to Case COMP/35.163 and Case

COMP/36.638.

(3) The complete text of these documents is published every year by

the FIA and can be found on FIA homepage: www.FIA.com.

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Official Journal of the European Communities

13.6.2001

FIA operates through a General Assembly; a Committee
consisting of the FIA World Council for Touring and the
Automobile and the FIA World Motor Sport Council; a
Senate; the specialised Motor Sport Commissions; an Inter-
national Court of Appeal; a Secretariat; and any other
permanent or temporary commission or sub-commission
which the Committee decides to set up.

(ii) The International Sporting Code of

the FIA and its

Appendices, ((cid:145)the Code(cid:146))

The Code is the document by which FIA lays down rules
for the organisation and the conduct of motor sport
is administered by a number of different
events.
It
in particular the World Motor Sport
organs of the FIA,
Council. The Code and the General Prescriptions (see
below) detail
the sporting/technical rules under which
the relevant motor sports events are to be conducted.
The Code contains various appendices, which lay down
very detailed specifications for vehicles, driver’s equipment,
approval of circuits, etc.

The Code takes effect as an agreement among the
members of FIA. It confers on the ASNs power to issue
licences to various classes of participants in motor sport
competitions (drivers, manufacturers and organisers). By
the licence holder accepts to be
accepting a licence,
contractually bound by the provisions of the Code and
the provisions for its enforcement in accordance with the
FIA statutes.

The main provisions of the Code as notified are:

(cid:151) in accordance with Article 108 of the Code, any person
wishing to be eligible to participate, as a competitor or
as a driver, in any competition is required to make an
application for a licence to the relevant ASN and to
pay the appropriate fees,

(cid:151) all

sporting

international

international competitions are required to be
the
calendar
entered
on
recording all
international events to be held during
the year. Article 47 states that no licence holder may
participate in an international event if it is not entered
on the FIA calendar and that no one may take part in
such an event if he does not possess an FIA licence.
Initially, entry on the calendar was at the discretion of
If a participant does not comply with these
FIA.
licence thereby
provisions, FIA may withdraw his
excluding him from any event authorised by FIA. For
instance, Article 58 states
case of
group which
non-compliance,
organises a competition or
therein will
have their licence withdrawn. Article 118 provides

or
takes part

in the

person

that

any

(cid:145)any person who shall

for, drive in,
that
officiate at, or in any manner whatsoever take part
in a prohibited competition will be suspended by the
ASN which has issued them with their licence(cid:146),

enter

(cid:151) the version of Article 24 initially notified provided that
no international series could be organised without the
written approval of FIA which approval was condi-
tional on the respect of FIA’s rights of ownership
concerning the
cham-
pionships.

televising of

international

(iii) The General Prescriptions applicable to all FIA cham-
trophies and cups ((cid:145)the General

pionships, challenges,
Prescriptions(cid:146))

The General Prescriptions set out the detailed sporting and
technical rules under which FIA motor sport series are to
be conducted. The initial notification included a provision
according to which all filming and moving picture rights
pertaining to any FIA World Championship are vested in
FIA. In 1997, FIA submitted to the Commission a new
version of this General Prescription which provided that
this rule applied not only to all FIA championships but
also to any international series authorised by FIA. In 1998,
FIA again modified the rule in order to reduce its scope
solely to FIA series.

(iv) The Regulations of FIA International Championships

Each FIA International Championships has its own set of
sporting and technical rules which are published in the FIA
Yearbook of Automobile Sport.

(v) Information contained in the FIA Yearbook and the FIA

Bulletin

The FIA Yearbook and the FIA Bulletin include regulations
and information on drag racing, the annual international
sporting calendar, organisers of events, advertising in auto-
mobile sport, international circuits and hill-climb courses
and long distance rallies.

4.2. The notified agreements

the Concorde Agreement,

the following
The notified arrangements also consisted of
agreements:
the Formula One
Agreement, a number of promoters contracts, a number of
Broadcasting Agreements relating to the FIA Formula One
World Championship and the FIA-ISC Agreement concerning
the FIA World and Regional Rally Championships.

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Official Journal of the European Communities

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The Concorde Agreement as originally notified was agreed on 5
September 1996 and was for a period of five years from 1
January 1997. On 27 August 1998, the parties notified the
1998 Concorde Agreement which replaces
earlier
agreement and runs from 1 January 1998 until 31 December
2007. The agreement is between FIA, all of the Formula One
teams and FOA, the latter being designated as the commercial
rights holder. The agreement sets out terms for the organi-
sation and running of the FIA Formula One World Cham-
pionship and the voting structure for its control, by reference
to other agreements, contracts, FIA rules and regulations.

the

novated its rights to FOA). It is dated 19 December 1995, took
full effect on 1 January 1997 and is effective until 2010. FOA
acquires from FIA for 14 years all of FIA’s commercial rights to
the FIA Formula One World Championship, including the such
right as the FIA has to exploit the sound and moving picture
rights to the Championship. FOA agrees to reward FIA and all
teams to reflect their contribution to the championship. FIA
and FOA mutually undertake to use their best endeavours to
maintain the FIA Formula One World Championship as the
premier world championship for racing cars and the only
FIA world championship for
single seater open wheeled
racing cars.

the

teams

recognise FIA’s
In the Concorde Agreement,
exclusive property in the FIA Formula One Championship,
including in particular the trade marks, the right to the title
thereof and responsibility for its organisation (clause 1.1). The
teams undertake to participate each year for the duration of the
agreement (clauses 5.3 and 5.2) and not to participate in any
other race, competition, exhibition or championship for open
wheel single seat cars other than formula one or a race for cars
complying with a current FIA Formula (for instance, Formula
3000) (clause 5.2).

all

the

the

and
of

ancillary

rights
in,
performance

Clause 4.1(b) defines FIA rights as all rights that are or become
lawfully vested in and held by or on behalf of FIA including all
rights granted by the teams. The teams grant to FIA on an
to,
exclusive basis
their
performance,
cars, machines,
equipment and persons connected to the teams (including the
drivers) as well as the rights in the formula one events (clause
4.2(a) and (b)). According to clause 4.10, the teams have no
rights to the championship elements, i.e. to any film footage of
the relevant events and any official timing information, intel-
lectual property rights, trade names,
logos or other indicia
owned by or on behalf of and/or vested in FIA and/or FOA.
However, the teams retain certain rights such as the right to
produce and market
their own merchandise as well as
computer games (clause 4(d)).

FIA and FOA undertake to the formula one teams (clause
5.4(d)(ii)), that the championship will be shown free to air
where there are suitable broadcasters prepared to do this. FIA
warrants that all FIA rights will be granted to FOA for exploi-
tation in order to make payments to the teams as provided by
(clause 5.5) (1). FOA also
schedule 5 of
undertakes to each team that it will enter into Grand Prix
contracts with the promoters who are to host a formula one
Grand Prix during the term of the 1998 Concorde Agreement
(clause 5.4(c)). FIA undertakes to enter a Grand Prix event on
the FIA calendar only where the promoters have entered into a
Grand Prix Contract with FOA (clause 11.2(a)).

the agreement

The Formula One Agreement is between FIA and FOM (then
(the latter has now
called FOCA Administration Limited)

(1) The Concorde Agreement sets out the obligations on FOA to pay
certain amounts to all teams to reflect their contribution to the FIA
Formula One World Championship. FOA agrees to pay each team a
sum calculated by reference to, inter alia, FOA’s gross revenues from
exploitation of the TV rights.

The Grand Prix contracts between FOA and local promoters are
drafted in accordance with the terms of schedule 4 to the
Concorde Agreement. The agreements typically run for five
years. They relate to the promotion of a Grand Prix event
and govern the commercial and financial management of
such Grand Prix. The promoter assigns to FOA all copyright,
intellectual property rights and other rights which it may have
now or in the future in any media (clause 23.3). Under clause
27, the promoters undertake to ensure that during the term of
the contract no race for open wheeled cars other than the
Grand Prix or a race in the Formula 3000 Championship
will take place on the circuit.

The Broadcasting Agreements have been concluded by FOA with
60 broadcasters worldwide. For each Grand Prix, FOA contracts
with a broadcasting company in the host country to serve as
host broadcaster, who is responsible for the production of
moving images of the Grand Prix and making a signal (cid:151)
the (cid:145)international feed(cid:146) (cid:151) available to non-host broadcasters.
Some of the agreements provided for a discount of 33 % on
the price paid by the broadcaster if the broadcaster agreed not
to broadcast any open wheeler racing other than formula one.
There are two categories of broadcasting agreements. For free-
access television, contracts are typically concluded with one
broadcaster in a territorially defined area and with certain
limited exclusivity granted. They have a duration of between
one and five years except for a small number which are for 10
years. For pay television, FOA has entered into pay TV
contracts for the (cid:145)supersignal(cid:146) (cid:151) a service provided by FOA
using state-of-the-art digital technology to produce six separate
channels. The duration of these agreements is up to 11 years.

The FIA/ISC Agreement became effective on 27 August 1996
and expires on 31 December 2010. Under this agreement, FIA
granted ISC for 14 years the exclusive broadcasting rights to 18
FIA championships for ISC’s own use and benefit.
ISC also
submitted copies of agreements
it had concluded with
organisers of events and with broadcasters. In April 2000, an
Ecclestone family trust sold the entire share capital of ISC to a
conglomerate led by Mr David Richards who informed the
Commission that prior to the transaction, FIA had modified
its contract with ISC which now only holds the rights to the
FIA World Rally and Regional Rally (European, African, etc.)
Championships.

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5. MODIFICATIONS AND UNDERTAKINGS BY THE PARTIES

races which competed with the

The Commission’s Statement of Objections issued in June 2000
made the preliminary assessment that FIA had a (cid:145)conflict of
interest(cid:146) in that it was using its regulatory powers to block the
events
organisation of
promoted or organised by FIA (i.e. those events from which
FIA derived a commercial benefit). Moreover,
for a certain
period of
time, FIA may have been abusing a dominant
position under Article 82 of the EC Treaty by claiming the
TV rights to motor sport series it authorised. An analogous
situation was created in formula one by the imposition of
certain clauses in the Concorde Agreement. Finally, certain
notified contracts appeared to contravene Article 81 and/or
Article 82 of the EC Treaty in that they raised further the
barriers
the promoters’
contracts prevented circuits used for formula one from being
used for races which could compete with formula one for a
period of 10 years; the Concorde Agreement prevented the
teams from racing in any other series comparable to formula
one;
the agreements with broadcasters placed a financial
penalty on them if they showed motor sports that competed
with F1 series. Certain agreements between FOA and broad-
casters appeared to restrict competition within the meaning of
Article 81 of the EC Treaty by granting the latter exclusivity in
their territories for excessive periods of time.

to entry for a potential entrant:

Although the parties do not agree with the Commission’s
Objections,
to modify
significantly certain of their arrangements.

nevertheless

agreed

have

they

The modifications have the following objectives:

(cid:151) to establish a complete separation of the commercial and
regulatory functions in relation to the FIA Formula One
World Championship and the FIA World Rally Cham-
pionship where new agreements are proposed which
place the commercial exploitation of these championships
at arm’s length,

(cid:151) to improve transparency of decision making and appeals

procedures, and to create greater accountability,

(cid:151) to guarantee access to motor sport to any person meeting

the relevant safety and fairness criteria,

(cid:151) to guarantee access to the international sporting calendar
and ensure that no restriction is placed on access to
external independent appeals,

to achieve a more complete separation between
In order
sporting and commercial matters and in order to increase
transparency, FIA proposes that Mr Ecclestone relinquish his
seat on the FIA Senate and his role as FIA Vice-President for
Promotional Affairs. FIA proposes to make Mr Ecclestone an
honorary Vice-President of FIA. FIA is also prepared to
stipulate that the representative of the formula one commission
should not participate in any decision in the FIA World Motor
Sport Council regarding the authorisation of any series which
is a potential rival.

Moreover, FIA will be prepared in principle to participate in the
sporting management and attach the FIA’s name to a series
where the series’ organiser wishes to form a partnership with
FIA, where an organiser promotes the definitive competition in
a particular discipline, where that organiser demonstrably
properly manages that competition and where the discipline
itself is sufficiently popular and developed.

On 28 June 2000 and 5 October 2000, FIA modified the Inter-
national Sporting Code as follows:

(cid:151) Article 2 (cid:151) addition of a positive affirmation that the
purpose of the code is to facilitate motor sport and that
the code will never be enforced so as to prevent or impede
a competition or the participation of a competitor, save
where FIA concludes that this is necessary for the safe,
fair or orderly conduct of motor sport,

(cid:151) Articles 17, 58, 84, 113, 118 (cid:151) addition of a provision
stating that FIA will state reasons for refusing any entry
to an international event, for any withdrawal of a licence
which arises as a consequence of a rule breach, if an inter-
national
licence for a track or autodrome is refused, if a
licence to an applicant who does not meet the relevant
criteria is refused and in the event of FIA being called
upon to adjudicate upon a disagreement between ASNs
upon the imposition of certain penalties,

(cid:151) Article 24 (cid:151) deletion of a reference to the FIA rights of
in championships as

ownership to the media rights
described in the general prescriptions,

(cid:151) Article 47 (cid:151) insertion of a positive affirmation that any
applicant who qualifies for a licence within the terms of the
code shall be entitled to such a licence and that any refusal
of a licence shall be reasoned,

(cid:151) to modify the duration of free-to-air broadcasting contracts
in relation to the FIA Formula One World Championship.

(cid:151) Article 63 (cid:151) insertion of a positive affirmation that the
holders of organiser’s licences who apply for organiser’s
permits shall be entitled to those permits provided that
the relevant criteria are met,

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(cid:151) Article 74 (cid:151) insertion of a positive affirmation that any
refusal of an entry will be reasoned and deletion of a
provision stating that no appeal is available in the event
of the refusal of an entry,

The parties have also modified their commercial arrangements
in the following manner:

(cid:151) 1998 Concorde Agreement

(cid:151) Article 165 (cid:151) insertion of a positive affirmation that FIA
will notify and state reasons to the persons upon whom
sentence is passed in the event of a decision to suspend or
disqualify,

(cid:151) Article 169 (cid:151) insertion of the positive declaration (cid:145)without
prejudice to any right to appeal any decision(cid:146) and removal
of the statement that any appellant may incur disquali-
fication in the event of such an appeal,

(cid:151) Article 189 (cid:151) insertion of a positive declaration that
judgments of FIA’s Court of Appeal shall be reasoned,

(cid:151) Article 191 (cid:151) in relation to the publication of judgments,
insertion of the statement (cid:145)without prejudice to any right of
appeal(cid:146) and removal of the statement that any appellant
may incur disqualification in the event of such an appeal.
FIA proposes to introduce a new sub Article (Article 191(b))
in the International Sporting Code which states:

By letter dated 28 July 2000 from FIA to the signatory
teams to the Concorde Agreement and to FOM (formerly
named FOA), FIA unilaterally waived its right to enforce the
provision in clause 5.2 of that Agreement which bound the
teams not to participate in any other race, competition,
exhibition or championship for open wheeler single seat
cars. FOA did the same by a letter dated 1 September
2000 to the signatory teams to the Concorde Agreement
and FIA. By its letter of 28 July 2000, FIA unilaterally
the
waived its
promoters
rights
holder and the promoters.

rights
contracts between the

in relation to clause 27 of

commercial

Moreover, FIA intends to waive its right to enforce clause
4.2 of the Concorde Agreement. However this waiver is
expressly without prejudice to:

(cid:151) the right of FOA to use images of the teams and cars in

computer games,

(cid:145)For the avoidance of doubt, nothing in the code shall prevent
any party from pursuing any right of action which it may
have before any Court or Tribunal(cid:146),

(cid:151) the right of FOA to use images of the teams and cars
for promotional material as defined in Article 4.3 of the
Concorde Agreement (such as photographs for posters,
tickets, etc.), and

(cid:151) Article 204 (cid:151) removal of a cross-reference to the general
prescriptions which claims ownership of the media rights
to FIA’s championships,

(cid:151) the teams’ agreement and consent to FOA continuing to
film, broadcast and otherwise exploit footage containing
images or representations of the teams and drivers to
the extent that any such agreement and consent might
be necessary under any national laws.

(cid:151) Annex G (cid:151) insertion of a guarantee that provided an event
complies in all respects with the provisions of the code FIA
will enter it onto the calendar. FIA proposes to incorporate
a new Article 5 to Annex G of the International Sporting
Code as follows:

(cid:145)Where two applications are received for the same date in the
it
calendar and the Calendar Commission determines that
would be contrary to the interests of
to grant
both and where no negotiated solution is possible, the event
which has a longer history of holding its event on the day in
question shall take precedence(cid:146),

the sport

(cid:151) Article 27 of the general prescriptions (cid:151) deletion of this
article which incorporated a claim by FIA to ownership of
the media rights and replacement with an affirmation that
the organiser of an event shall ensure that media coverage
is fair and impartial.

(cid:151) Grand Prix contracts with the promoters

By letter dated 13 September 2000 to every promoter in
the European Union whose contract contained a clause 27
provision, FOA unilaterally waived its rights in relation to
this clause.

(cid:151) FIA/FOA Agreement dated 19 December 1995

The main proposed amendments to the FIA/FOA Agreement
dated 19 December 1995 between FIA and FOA aim at
deleting any reference to FIA favouring the FIA Formula
One Championship or to FIA endorsing a Grand Prix
(over other events) and at guaranteeing that no provision
in the agreement would prevent FIA from performing its
regulatory functions.

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Upon expiry of the abovementioned agreement with FOA,
FIA proposes to enter into a 100-year agreement with a
commercial rights holder for the marketing of FIA rights in
relation to the formula one championship. All rights to
organise and receive revenues from the championship will
be transferred to this company for a fixed fee. FOA will not
be automatically named as
to the existing
agreement. The draft agreement provides for the separation
of commercial and regulatory functions in relation to
formula one, allows FIA to use its logos etc. for regulatory
purposes, acknowledges FIA as the sole regulator of the
championship and does not
contain any provision
requiring FIA to favour this specific championship over
others.

successor

Formula One and FIA World Rally Championships, in exchange
of one-off fixed fee, payable at the outset.

Minimum standards of safety are essential to the proper func-
tioning of motor sport and it is appropriate for FIA to impose
rules on participants in and organisers of motor sport events in
order to guarantee the maintenance of those standards. In the
absence of binding rules, organisers of and participants in
motor sport events might be tempted to overlook certain
essential safety requirements in an effort to reduce costs.

FIA proposes to adopt a similar approach to the FIA World
Rally Championship (FIA/ISC Agreement) and to any other
into
FIA series.
commercially viable
arms’-length commercial agreements which will provide
for fixed payments to be made to FIA removing thus any
incentive for FIA to discriminate in favour of any series for
commercial purposes.

FIA will

enter

(cid:151) FOA broadcasting contracts

FOA has removed from its standard form TV contract the
provision whereby broadcasters were afforded a discount of
the rights fee payable if they did not broadcast any other
form of open wheeler racing and by letters dated 14 August
2000 to the two broadcasters in the European Union
whose contracts contained such a clause FOA unilaterally
waived its rights in relation to it. Where exclusive rights
have been granted in relation to terrestrial television, FOA
these contracts to a
is now limiting the duration of
maximum of five years in the case of host broadcasters;
and to a maximum of three years in all other cases.

FOA undertakes to notify comparable rival broadcasters
when exclusive free to air broadcasting arrangements for
a given territory expire and to invite them to apply. FOA
has agreed to consider applications for broadcast rights on
a non-discriminatory basis.

6. ASSESSMENT

The proposed changes to the regulatory framework and to the
commercial arrangements appear
to the Commission to
introduce sufficient structural remedies minimising the risk of
the basis for a healthy
possible future abuse and to set
related to
competitive environment
inter alia, the
motor sport. The Commission considers that,
following elements
to this
assessment.

in economic activities

are of particular

relevance

The new rules introduce a separation of commercial and regu-
latory activities in motor sport, which FIA intends to make
effective, inter alia, through the appointment as from 2010 of
a (cid:145)commercial rights holder(cid:146) for 100 years, for each of the FIA

The modified rules provide that and the Commission has been
assured that the FIA rules will never be enforced so as to
prevent or impede a competition or the participation of a
competitor, save for reasons inherently linked to FIA’s regu-
latory role of maintaining safety standards. FIA has guaranteed
that its licensing and disciplinary rules only be enforced to
ensure a minimum level of safety at motor sport events
(Article 2 FIA code). The reformed rules appear to provide
for a new regulatory environment
satisfactory guarantees
where the FIA’s licensing powers and the code’s sporting and
technical rules will be applied in an objective, non-discrimi-
natory and transparent manner. The FIA will not object to the
establishment of new events and the participation of circuits,
the essential
teams and drivers
provisions contained in the code have been complied with.
The FIA has
those
complying with the rules of the code will have their events
listed on the international calendar as a matter of right.

in them, provided that

confirmed that all

in this

respect

FIA’s submissions have confirmed the availability of
legal
challenge against FIA decisions both within the FIA structure
independent
and before national courts. Access to external
appeals has been guaranteed in the FIA rules. As mentioned
above, the FIA has agreed to insert a new clause clarifying that
anyone who is subject to FIA decisions can challenge them
before the national courts.

removes

to intra-brand as well as

the previously
The new regulatory environment
inter-brand
identified obstacles
competition. Competing events and series within the formula
one discipline (and with other motor sport disciplines) will be
possible. The reforms also create the possibility of increased
inter-brand competition. New disciplines can be created, and
events and series in potentially competing disciplines can be
approved. FIA will have neither the commercial incentive nor
the regulatory power to limit the type and number of events it
authorises, other than on the basis of objective criteria.

The notified agreements as amended will remove those barriers
which had prevented in the past
the use of FIA licensed
products and circuits or the participation of FIA licensees in
different disciplines or
in the same
discipline. The proposed changes to the notified agreements
will,
in the availability of racetracks in
Europe for rival series to use, even if these circuits already
host FIA Formula One championship events.

in competing events

for example, result

13.6.2001

EN

Official Journal of the European Communities

C 169/11

for

the

aiming

commercial

arrangements

The modified Concorde Agreement establishes the organisa-
tional structure of the FIA Formula One Championship and
provides
at
marketing the series. As motor sport and especially formula
one is a particularly complex technical activity requiring
investments in technological research and devel-
important
opment,
it is indispensable for all participants to agree on
the way the series are organised. In this sport, for instance,
all teams participate in all events at the same time. However, it
is impossible to market the individual rights of each team
participating in a race. As FIA, FOA, the teams, the drivers,
the manufacturers and the local organiser or promoter may all
have rights in the event, some arrangement between all of
them for the sale of rights, especially the broadcasting rights,
appears to be indispensable. The Concorde Agreement provides
for FOA to be the commercial rights holder for the FIA
Formula One World Championship and to negotiate on
behalf of
the races
the teams and FIA the organisation of
with the local promoters and the sale of broadcasting rights
with broadcasters. These arrangements do not appear to affect
prices or output in the market to any significant degree. Indi-
vidual formula one events do not compete with each other as
they are not broadcast at the same time. Moreover all formula
one events are available for broadcasting.

the Concorde Agreement

Moreover, due to the complex technicalities of this particular
sport,
efficient
marketing of formula one series and guarantees that free to
air will be the principal way of transmission to viewers.

allows more

casters to a length that does not exceed what seems reasonable
in view of the nature of the rights and the obligations and
investments undertaken by broadcasters, given the specific
features of the sport. The pricing policy applied to contracts
no longer penalises broadcasters who choose to broadcast open
wheeler racing events other than formula one. The possibility
of intra-brand competition to formula one brought about by
the new regulatory environment constitutes a further element
in the Commission’s favourable assessment of the amended
broadcasting arrangements.

7. CONCLUSION

The modifications and undertakings of the parties described
above substantially alter the legal and economic context as
compared to that described by the Commission in its
Statement of Objections. The Commission now intends to
take a favourable view in respect of the notified agreements.
Before adopting a favourable opinion, the Commission invites
third parties to send their observations within one month of
the publication of this notice by mail to the following address
or by fax to the following number quoting the reference Case
COMP/35.163 FIA or COMP/36.638 FIA/FOA:

European Commission
Directorate-General for Competition
Directorate C
Rue de la Loi/Wetstraat 200
B-1049 Brussels
Fax (32-2) 296 98 04.

All provisions
in the notified agreements whereby FIA
compelled licence holders to surrender to FIA their broad-
casting rights have been removed. The agreements no longer
contain any rule or mechanism which would allow FIA to
appropriate all media rights to a given championship.

The broadcasting arrangements for formula one, as amended,
will bring periods of exclusivity granted to individual broad-

its observations contain business
If a party considers that
secrets,
indicate the passages which in its opinion
it must
ought not to be disclosed on the ground that they contain
business secrets or other confidential material, and state the
reasons. If the Commission does not receive a request with
reasons it will assume that the observations do not contain
any confidential information.