Abstract
Although it may be intuitively appealing to assume that an integrated market for Europe inevitably brings with it an integrated regulatory strategy underpinning that market, the EC Treaty does not provide for this. Article 5(1) EC declares that ‘The Community shall act within the limits of the powers conferred upon it by this Treaty and of the objectives assigned to it therein.’ This is commonly referred to as the principle of ‘attributed competence’. It is constitutionally fundamental. Accordingly the EC possesses no general regulatory competence and it cannot ‘self-authorise’ an increase in its own competence. It may act only in the areas in which the Member States have granted it a mandate. Extension of the grant rests with the Member States acting at times of periodic Treaty revision.
First published in International Sports Law Journal 2006 issue 3/4, pp 3–27.
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Notes
- 1.
- 2.
- 3.
- 4.
- 5.
- 6.
Cf., e.g., Art. 152 on public health, Art. 153 on consumer protection, Arts. 174–176 on environmental policy.
- 7.
- 8.
Art. 152(5) EC.
- 9.
On press diversity see Case C-368/95, Vereinigte Familiapress Zeitungsverlags- und vertriebs GmbH v. Heinrich Bauer Verlag, [1997] ECR I-3689; on health care see Case C-157/99, B.S.M. Geraets-Smits v. Stichting Ziekenfonds VGZ, H.T.M. Peerbooms v. Stichting CZ Groep Zorgverzekeringen, [2001] ECR I-5473; Case C-372/04 ex parte Watts judgment of 16 May 2006.
- 10.
- 11.
Case 240/83, [1985] ECR 531.
- 12.
Case C-376/98, [2000] ECR I-8419.
- 13.
Opinion 2/94, Accession by the EC to the ECHR, [1994] ECR I-1759.
- 14.
See for example use of imprecise adjectives and adverbs in the judgment such as genuinely, likely, probable, appreciable and ‘remote and indirect’ in Paras. 84, 86, 97, 108, and 109 of the judgment respectively. Usher 2001, 1519.
- 15.
Case C-377/98, [2001] ECR I-7079.
- 16.
Case C-491/01, [2002] ECR I-11543.
- 17.
Case C-210/03, [2004] ECR I-0000.
- 18.
Cases C-154/04 & C-155/04, [2005] ECR I-0000.
- 19.
Case C-372/04, note 9 above, Para. 121.
- 20.
Cf., e.g., Case C-512/03 J E J Blankaert, judgment of 8 September 2005.
- 21.
Cf., e.g., Case C-446/03 Marks and Spencer v. Halsey, judgment of 13 December 2005.
- 22.
Case C-265/95 Commission v. France, [1997] ECR I-6959.
- 23.
Case C-423/98 Albore, [2000] ECR I-5965.
- 24.
Case C-222/97 Trummer and Mayer, [1999] ECR I-1661, Case C-464/98 Westdeutsche Landesbank v. Stefan, [2001] ECR I-173.
- 25.
- 26.
Case 36/74, [1974] ECR 1405.
- 27.
Case 13/76, [1976] ECR 1333.
- 28.
Case C-415/93, [1995] ECR I-4921.
- 29.
In Case T-313/02, David Meca-Medina and Igor Majcen v. Commission, [2004] ECR II-3291 the Court of First Instance allowed itself to be lured down the misleading path of uncritically separating out sport from its commercial impact: see further Weatherill 2005A, 416. The case is pending on appeal before the Court: Case C-519/04 David Meca-Medina and Igor Majcen v. Commission.
- 30.
- 31.
- 32.
Case 120/78, Rewe-Zentrale AG v. Bundesmonopolverwaltung für Branntwein, [1979] ECR 649.
- 33.
- 34.
- 35.
Egan 2001.
- 36.
Art. 3(g) EC.
- 37.
Case C-126/97 Eco Swiss China Time Ltd v. Benetton International NV, [1999] ECR I-3055.
- 38.
See, e.g., Albors-Llorens 2002.
- 39.
Reg. 2659/2000, OJ 2000 L 304/7.
- 40.
Reg. 2790/1999, OJ 1999 L 336/21.
- 41.
For a detailed examination, see Whish 2003, pp. 168–174, Chs. 15 and 16.
- 42.
See for detail Whish 2003, Chs. 7 and 8.
- 43.
OJ 2003 L 1/1.
- 44.
- 45.
Art. 23 Reg. 1/2003.
- 46.
OJ 2006 C 00/00, available via http://ec.europa.eu/comm/competition/antitrust/legislation/fines_en.pdf.
- 47.
OJ 2002 C 45/3.
- 48.
Cases C-6, C-9/90, [1991] ECR I-5357.
- 49.
Case C-453/99, [2001] ECR I-6297.
- 50.
- 51.
Art. 7(2) Reg. 1/2003 confers standing for these purposes on ‘natural or legal persons who can show a legitimate interest’.
- 52.
Case T-24/90, Automec v. Commission, [1992] ECR II-2223.
- 53.
COM (2005) 672.
- 54.
OJ 2004 C 101/43.
- 55.
Art. 11(6) Reg. 1/2003.
- 56.
Art. 16 Reg. 1/2003.
- 57.
The landmark decision was Case 6/64, Costa v. ENEL, [1964] ECR 585. In the competition law field the best-known decision is Case 14/68, Walt Wilhelm, [1969] ECR 1, although, as mentioned in the text above, Reg. 1/2003 has now addressed some relevant outstanding issues, Cf. Whish 2003, pp. 75–77.
- 58.
Art. 3(2) Reg. 1/2003.
- 59.
Cf. Dannecker and Jansen 2004.
- 60.
But see further below for different approaches to collective selling of broadcasting rights.
- 61.
- 62.
Commission Notice on market definition, OJ 1997 C 372/5.
- 63.
Decision 2000/12/EC, OJ 2000 L 5/55. For comment, see Weatherill 2000A, 275.
- 64.
Case 322/81, note 61 above.
- 65.
Decision 89/205, OJ 1989 L 78/43, 4 CMLR (1989) 757.
- 66.
Cases T-69, T-70, T-76/89, [1991] ECR II-485, 535, 575.
- 67.
Joined Cases C-241/91P and C-242/91P, RTE and ITP v. Commission, [1995] ECR I-743.
- 68.
Case C-7/97, [1998] ECR I-7791.
- 69.
See in similar vein Case C-418/01, IMS Health, [2004] ECR I-5039.
- 70.
Art. 3(2) Reg. 1/2003.
- 71.
Case C-415/93, note 28 above.
- 72.
See, e.g., Dubey 2000.
- 73.
Relevant documents on the Commission's quest for ‘modernisation’ of the regulation of the sector may be accessed via http://ec.europa.eu/comm/avpolicy/reg/tvwf/modernisation/index_en.htm.
- 74.
On inelasticity of demand for major events see Comm. Dec. 2000/400, Eurovision, OJ 2000 L 151/18 (annulled, but not on the point of market definition, in Cases T-185/00, et al. M6 and others v. Commission, [2002] ECR II-3805); Comm. Dec. 2000/12 1998 Football World Cup, OJ 2000 L 5/55.
- 75.
E.g., in 1999 the UK competition authorities blocked a proposed merger between BskyB, a satellite broadcasting company, and Manchester United, a football club, on the basis that it would operate contrary to the public interest; Cm 4305, 1999. Among other factors it was thought that competition in the market for acquisition of broadcasting rights would have been restricted by BskyB's more intimate involvement with the supply-side and that the gulf between rich and poor football clubs would be widened. For comment, see Tassano 1999, 395; Harbord and Binmore 2000, 142.
- 76.
E.g., in the UK the consequence of the blocking of the BskyB/Manchester United merger, supra note 75, has been the acquisition by media companies of minority but not insignificant stakes in football clubs; see Brown 2000.
- 77.
‘Sky retains Premiership title after £ 1.7 bn TV rights auction’, The Independent, Saturday 6 May 2006.
- 78.
- 79.
Cf. Geradin 2005, 68.
- 80.
Dec. 2000/12, note 63 above.
- 81.
Cf. Case T-193/02 Laurent Piau v. Commission, [2005] ECR II-000 (Art. 82 applicable in principle but no breach). An appeal against the CFI decision was dismissed in Case C-171/05P, Laurent Piau v. Commission, judgment of 23 February 2006.
- 82.
Pending Case C-000/06, referred to the European Court by Tribunal de Commerce de Charleroi in May 2006. For background, see Weatherill 2005D, 3.
- 83.
COMP 35.163, Notice published at OJ 2001 C 169/5.
- 84.
Fixing the limits of the notion of the ‘undertaking’ for the purposes of determining the limits of the application of the Treaty competition rules is an awkward problem that extends far beyond sport: see, e.g., Joined Cases C-264/01, C-306/01, C-354/01 and C-355/01 AOK, [2004] ECR I-2493; Case C-222/04 Cassa di Risparmio di Firenze, judgment of 10 January 2006.
- 85.
Dec. 93/403 Eurovision, OJ 1993 L 179/23 granting exemption under (what is now) Art. 81(3) was annulled in Joined Cases T-528/93, T-542/93, T-543/93 and T-546/93 Métropole Télévision and Others v. Commission, [1996] ECR II-649; and the subsequent exemption granted by the Commission in Dec. 2000/400 Eurovision, OJ 2000 L 151/18 was annulled in Cases T-185/00 et al. M6 and others v. Commission, [2002] ECR II-3805. See further below.
- 86.
Case 258/78, [1982] ECR 2015.
- 87.
- 88.
Case 262/81, [1982] ECR 3381.
- 89.
Cf., e.g., Case C-250/92 Gottrup Klim v. DLB, [1994] ECR I-5641; Cases T-374/94 et al. European Night Services v. Commission, [1998] ECR II-3141. For an account of the nuances in the relevant case law, see Whish 2003, pp. 106–131.
- 90.
Case T-112/99, Métropole télévision (M6), Suez-Lyonnaise des eaux, France Télécom v. Télévision française 1 SA (TF1), [2001] ECR II-2159.
- 91.
Case T-328/03 O2 (Germany) GmbH v. Commission, judgment of 2 May 2006, Para. 71.
- 92.
Case C-234/89, Delimitis, [1991] ECR I-935; Case C-306/96 Javico et al. v. Yves St Laurent Parfums, [1998] ECR I-1983; and case C-214/99 Neste Markkinoiniti Oy, [2000] ECR I-11121.
- 93.
- 94.
Wachtmeister 1998.
- 95.
Note 62 above.
- 96.
Dec. 2003/778, OJ 2003 L 291/25, Para. 79. See further below.
- 97.
IV/36.033, KNVB/Sport 7, OJ 1996 C 228/4.
- 98.
COMP 35.163, Notice published at OJ 2001 C 169/5.
- 99.
On inelasticity of demand for major sports events see Comm. Dec. 2000/400, Eurovision, OJ 2000 L 151/18 (annulled, but not on the point of market definition, in Cases T-185/00 et al. M6 and others v. Commission, [2002] ECR II-3805); Comm. Dec. 2000/12 1998, Football World Cup, OJ 2000 L 5/55. In the case of films, cf. Case IV/36.237 TPS 1, OJ 1999 L 90/6.
- 100.
Cf. Case 262/81, note 88 above.
- 101.
Cf. Eurovision, note 85 above, and more fully below in connection with collective purchasing.
- 102.
Note 94 above.
- 103.
Case IV/M469 MSG Media Service, OJ 1994 L 364/1; COMP/38.287 Telenor/Canal + (2004).
- 104.
Note 62 above.
- 105.
OJ 1993 C 94/6.
- 106.
COM (1999) 644 and/2. For comment see Weatherill 2000D, 282.
- 107.
Cf. Case T-328/03, note 91 above, Paras. 109–116: the CFI was unconvinced by the Commission's preference to treat such matters in the light of Art. 81(3) instead of Art. 81(1) and annulled the Exemption Decision. See similarly Cases T-374/94, note 89 above. Embedded in these detailed disputes is a larger issue about the precise relationship between analysis conducted under Art. 81(1) and under Art. 81(3): for recent exploration, see Nazzini 2006, 497.
- 108.
OJ 1999 L 336/21.
- 109.
Art. 9 amplifies the method of calculation.
- 110.
Taylor and Lewis 2002, 414, Para. B2.290.
- 111.
OJ 2003 L 1/1.
- 112.
As mentioned above, Reg. 1/2003 foresees a pattern of co-operation within the ‘network’ of European competition agencies designed to encourage consistent application of the law within the newly decentralised system: see Arts. 11–16 Reg. 1/2003 and the Commission Notice on cooperation within the Network of Competition Authorities, OJ 2004 C 101/43.
- 113.
- 114.
Cf. Cases C-51/96 & C-191/97, Deliège v. Ligue de Judo, [2000] ECR I-2549.
- 115.
COMP 37.806 ENIC/UEFA, IP/02/942, 27 June 2002.
- 116.
- 117.
Case C-309/99, J.C.J. Wouters, J.W. Savelbergh, Price Waterhouse Belastingadviseurs BV v. Algemene Raad van de Nederlandse Orde van Advocaten, [2002] ECR I-1577.
- 118.
The CFI's failure to appreciate this is the principal source of my criticism of Case T-313/02 David Meca-Medina and Igor Majcen v. Commission, note 29 above. Para. 55 of the judgment is especially unfortunate.
- 119.
A decision such as Case C-250/92, Gottrup Klim v. DLB, [1994] ECR I-5641 should therefore be seen as running in the same direction as Case C-309/99 Wouters, note 117 above. For an account of the nuances in the relevant case law see Whish 2003, pp. 106–131; cf. also Nazzini 2006. A-G Lenz's Opinion in Bosman carries traces of this approach, Case C-415/93, note 28 above, especially Paras. 262–276. Also relevant in insisting on a contextual appreciation of the scope of Art. 81(1) is Case C-67/96, Albany International BV, [1999] ECR I-5751 (especially Paras. 59–60). The Court accepts that a restriction of competition is inherent in collective agreements between organisations representing employers and workers, but is prepared to place the matter beyond the reach of Art. 81(1). The reason lies in the need to interpret the provisions of the EC Treaty as a whole. The social policy objectives pursued by such agreements and recognised by the Treaty would be seriously undermined if Art. 81(1) caught such arrangements.
- 120.
- 121.
Paras. 118–124 of Dec. 2003/778 Champions League, OJ 2003 L 291/25, considered more fully below.
- 122.
The collectively sold package may be (and increasingly is) broken down into constituent units – live matches, recorded highlights, etc – but this does not affect the basic issue, which is the suppression of sales by individual clubs. Moreover, rights may be, but need not be, sold exclusively – exclusivity is a matter that is distinct from collectivity.
- 123.
Cf. Cave and Crandall 2001, F4, especially at F18.
- 124.
‘Broadcasting of Sports Events and Competition Law’, note 94 above.
- 125.
IP/01/1043, 20 July 2001.
- 126.
‘Background Note’, Memo 01/271, 20 July 2001.
- 127.
IP/02/806, 3 June 2002; OJ 2002, C 196/3.
- 128.
Dec. 2003/778, OJ 2003 L 291/25.
- 129.
Dec. 2003/778, Paras. 125–131.
- 130.
Note 85 above, and see more fully below on collective purchasing. The CFI annulled the Commission's Decisions in Eurovision but did not take issue with the identification of these economic benefits flowing from the arrangements.
- 131.
On this aspect of Champions League in particular, see Petit 2004, 429, 436–437. See subsequently the Commission report of 21 September 2005 into the provision of sports content over third generation mobile networks, available via http://ec.europa.eu/comm/competition/antitrust/others/sector_inquiries/new_media/3g/final_report.pdf.
- 132.
Speech delivered in Barcelona, ‘Commercialising Sport: Understanding the TV Rights Debate’, 2 October 2003.
- 133.
S31 Gesetz gegen Wettbewerbsbeschraenkungen as amended with effect from 1 January 1999.
- 134.
Re the supply of services facilitating the broadcasting on television of Premier League football matches, [1999] UKCLR 258.
- 135.
- 136.
The Competition Act 1998 is the key statute.
- 137.
Cf. note 59 above.
- 138.
COMP/C.2/37.214, OJ 2005 L 134/46.
- 139.
IP/05/62, 19 January 2005.
- 140.
‘Sky retains Premiership title after £ 1.7 bn TV rights auction’, The Independent, Saturday 6 May 2006.
- 141.
E.g., ‘Sky and Brussels at war over Premiership rights’, The Observer, 11 September 2005 (Business Section, p. 1).
- 142.
IP/06/356, 22 March 2006.
- 143.
- 144.
Paras. 164–167 of the Decision, note 128 above.
- 145.
COM (1999) 644 and/2. For comment, see Weatherill 2000D, 282.
- 146.
- 147.
Speech delivered in Brussels at a conference on ‘Governance in Sport’, 26 February 2001, available as Speech/01/84 via http://europa.eu.int/comm/sport/key_files/comp/a_comp_en.html.
- 148.
Support for this approach is expressed by the Committee of the Regions, Opinion on the European Model of Sport, OJ 1999 C 374/56, Para. 3.8.
- 149.
OJ 2004 C 101/97. See especially Para. 42. Cf. also Wachtmeister note 94 above who states that ‘Competition law is not the right instrument for achieving cultural or regulatory aims’ but also tentatively raises the same possibility in connection with solidarity as Commissioner Monti, note 147 above.
- 150.
Cf. discussion of Case C-309/99, Wouters, note 117 above; and also Case C-67/96, Albany International BV, note 119 above.
- 151.
- 152.
Case C-376/98, Germany v. Parliament and Council, [2000] ECR I-8419, Tobacco Advertising.
- 153.
Dec. 93/403 Eurovision, OJ 1993 L 179/23.
- 154.
Joined Cases T-528/93, T-542/93, T-543/93 and T-546/93, Métropole Télévision and Others v. Commission, [1996] ECR II-649.
- 155.
Dec. 2000/400, Eurovision, OJ 2000 L 151/18.
- 156.
See Paras. 28–37, 106–110 of Dec. 2000/400, note 128 above.
- 157.
Paras. 50–58 of Dec. 2000/400, note 128 above.
- 158.
Cases T-185/00 et al. M6 and others v. Commission, [2002] ECR II-3805. For comment see Herold 2002, 1.
- 159.
See in particular Para. 64 of the judgment in Case T-185/00 et al., note 158 above, citing the seminal Case 262/81, note 88 above.
- 160.
Dec. 2003/778, note 128 above.
- 161.
IP/01/583, 20 April 2001.
- 162.
Comm. Dec. 2001/478, OJ 2001 L 171/12.
- 163.
Paras. 49–61 of the Decision. The Commission will monitor change in market structure, particularly in the wake of the ‘Internet revolution’, Para. 56.
- 164.
Para. 59.
- 165.
OJ 1989 L 298/23, OJ 1997 L 202/60 respectively. See generally on this regime Jones 1999A, 299.
- 166.
Ars. 47(2) and 55 (ex 57(2) and 66) EC.
- 167.
Arts. 153(2), 152(1) EC. Cf. Case C-376/98 note 152 above; for discussion of the impact of this case on cultural aspects of harmonised laws see Katsirea 2003, 190.
- 168.
See Craufurd Smith and Boettcher 2002, 107.
- 169.
‘Free’ television for these purposes means ‘broadcasting on a channel, either public or commercial, of programmes which are accessible to the public without payment in addition to the modes of funding of broadcasting that are widely prevailing in each Member State (such as licence fee and/or the basic tier subscription fee to a cable network’, Recital 22.
- 170.
Third Report on the application of Directive 89/552, COM (2001) 9, p. 8.
- 171.
They should be ‘outstanding events which 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…’, Recital 21; Recital 18 refers non-exhaustively to the ‘Olympic games, the football World Cup and European football championship’.
- 172.
The most recent consolidated list of measures may be found at OJ 2003 C 183/03, and includes measures notified by Italy, Germany, Austria, Ireland and the United Kingdom. This is, however, out-of-date. The Commission’s Fifth Report on the application of the Directive reveals that in 2004 Belgium notified measures and in 2005 France did so: COM (2006) 49, Para. 3.3. For a full list, see http://ec.europa.eu/comm/avpolicy/reg/tvwf/implementation/events_list/index_en.htm.
- 173.
The list was an ‘utter failure’, Halgreen 2004, p. 131.
- 174.
Case T-33/01, judgment of 15 December 2005.
- 175.
The Commission has brought an appeal before the Court on this point: Pending Case C-125/06P Commission v. Infront WM, OJ 2006 C 108/7.
- 176.
This is discussed above: on inelasticity of demand for major events see Comm. Dec. 2000/400 Eurovision, OJ 2000 L 151/18 (annulled, but not on the point of market definition, in Cases T-185/00 et al. M6 and others v. Commission, [2002] ECR II-3805); Comm. Dec. 2000/12 1998 Football World Cup, OJ 2000 L 5/55.
- 177.
Case T-33/01, note 184 above.
- 178.
Note 182 above.
- 179.
Resolution on the broadcasting of sports events, OJ 1996 C 166/109.
- 180.
OJ 2000 C 364/1.
- 181.
Art. 52 EU Charter.
- 182.
See generally, Craufurd Smith 1997.
- 183.
See, e.g., with particular emphasis on the EU context, Arino 2004, 97.
- 184.
- 185.
Cf. more fully Craufurd Smith and Boettcher 2002.
- 186.
- 187.
Cf. Jones 1999A, 326–336.
- 188.
1 WLR (2001) 1604.
- 189.
COM (2002) 778, p. 10. The fifth – and most recent – Commission Report, note 172 above, is similarly anodyne.
- 190.
Available via http://ec.europa.eu/comm/avpolicy/reg/tvwf/modernisation/consultation_2003/index_en.htm. As one might expect, the BBC response to the Commission is warmly supportive of the House of Lords ruling.
- 191.
See in particular the Helsinki Report, note 145 above.
- 192.
Cases C-51/96 and 191/97, note 114 above, Paras. 41–42 of the judgment.
- 193.
Case C-176/96, [2000] ECR I-2681, Paras. 32–33 of the judgment.
- 194.
- 195.
Cf. note 1 above.
- 196.
Note 145 above.
- 197.
- 198.
Note 128 above.
- 199.
Case C-309/99 note 117 above. Strains of this approach are evident in A-G Lenz's Opinion in Bosman.
- 200.
The Commission’s decision in ENIC/UEFA, note 115 above cites Wouters. For its invocation in relation to salary caps see Hornsby 2002, 142.
- 201.
As in Champions League note 128 above and in Eurovision, note 85 above.
- 202.
Case C-415/93, [1995] ECR I-4921.
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Weatherill, S. (2014). The Sale of Rights to Broadcast Sporting Events Under EC Law. In: European Sports Law. ASSER International Sports Law Series. T.M.C. Asser Press, The Hague. https://doi.org/10.1007/978-90-6704-939-9_13
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