Antitrust Law Daily Wrap Up, ANTITRUST NEWS: EC to investigate International Skating Union eligibility rules, (Oct 5, 2015)

By Linda O’Brien, J.D., LL.M.

The European Commission (EC) has opened a formal investigation into International Skating Union (ISU) rules that permanently ban skaters from competitions such as the Winter Olympics and the ISU World and European Championships if they take part in events not approved by the ISU, the EC announced today.

The ISU is the sole international governing body recognized by the International Olympic Committee (IOC) to administer the sports of figure skating and speed skating on ice. It was founded in 1892, making it one of the oldest international sport federations. Now based in Lausanne, Switzerland, the ISU was formed to establish standardized international rules and regulations for the skating disciplines it governs, and to organize international competitions in these disciplines. Its members are national ice-skating associations.

Sporting rules are subject to European Union (EU) antitrust rules when the body setting the rules or the companies and persons affected by the rules are engaged in an economic activity. On the basis of EU Court case law, sporting rules are compatible with EU law if they pursue a legitimate objective and if the restrictions that they create are inherent and proportionate to reaching this objective, according to the EC. This assessment can be performed by national courts, national competition authorities, particularly vis-à-vis national bodies, and by the Commission, especially in the case of practices at international level.

Many disputes about sporting rules raise primarily issues related to governance of the sport, including relations between different stakeholders belonging or being closely connected to the structure headed by sports federations, the EC observed. Such disputes can usually be best handled by national courts rather than by the EC. The same goes for disputes resulting from the application of sporting rules to individuals, such as athletes being sanctioned for breach of relevant anti-doping or match-fixing regulations, that are best handled by relevant arbitration bodies or national courts.

The Commission will focus its investigate on whether ISU rules are unduly preventing athletes from exercising their profession by putting disproportionate and unjustified obstacles in the way of companies not linked to the ISU that want to organize alternative ice-skating events. ISU rules threaten athletes who participate in such events with a lifetime ban. This may prevent alternative event organizers from entering the market or drive them out of business, the EC noted. If confirmed, such practices could constitute anti-competitive agreements and/or an abuse of a dominant market position in breach of EU antitrust rules.

"For many, sport is a passion—but it can also be a business, said Margrethe Vestager, EU Commissioner in charge of competitive policy. “We recognize and respect the role of international sports federations to set the rules of the game and to ensure proper governance of sport, notably in terms of the health and safety of the athletes and the integrity of competitions. However, in the case of the International Skating Union we will investigate if such rules are being abused to enforce a monopoly over the organization of sporting events or otherwise restrict competition.”

“Athletes can only compete at the highest level for a limited number of years, so there must be good reasons for preventing them to take part in events," she added. "The Commission has decided to pursue this investigation because it raises specific allegations of breaches of competition law at the international level rather than wider issues of internal governance or rule-making in a sport federation."

Companies: International Skating Union

News: Antitrust