The European Commission has recently told the Federation International de l’Automobile (FIA), entity in charge of the international motor racing, that it considers the FIA to be abusing its dominant position and restricting competition. The Commission has now sent its statements of objections not only to the FIA but also to two other companies Formula One Administration Ltd (FOA) which sells the television rights to the Formula One Championship, and to International Sportsworld Communicators (ISC) which is responsible for the marketing of the broadcasting rights to a number of major international motor sport events.

The DG IV has identified the following competition problems:

  • The FIA uses its power to block series, which could compete with its own events.

Anyone wishing to take part in an international motor sports event authorised by the FIA must obtain a FIA licence. Track owners, vehicle manufacturers, organisers of motor sport events and drivers must apply this rule. Licence holders are only permitted to enter or organise events authorised by the FIA. Any licence holder found to ignore this prohibition can be taken his licence, which prevent the licensee from participating in almost all international motor sport events taking place in Europe.

This means that FIA is able to control the access of the inputs, such as drivers or circuits, which are necessary for organisers or promoters who wish to organise a championship which could compete with one of FIAs own events.

  • The FIA uses its power abusively to acquire all the television rights to international motor sports events.

Television coverage is most important to the success of a motor sport event, because organisers and promoters rely heavily on sponsorship to finance their events.

  • FOA and the FIA protect the formula One championship from competition by tying up everything that is needed to stage a rival championship.

The statement of objections lists in detail the Commission’s allegations against the FIA, FOA and ISC and how the Commission sees the infringements against articles 81 and 82 of the EC Treaty.

The three addressee companies have full rights of defence: they have the opportunity to reply to the Commission’s charges in writing within two months and getting access to the files. They can also produce evidence of their own and supporting statements from third parties. They can also ask for an oral hearing attended by complainants and representatives of the anti-trust authorities of all EU Member States.

This article is based and incorporates information provided by the European Commission (press release) and is intended for general information. Specialist advice should be sought before acting on it.