F1 Broadcasting Deals Found To Be Restricting Competition

In the first results of a two-year investigation, the European Commission (EC) has found that the sale of broadcasting rights for Formula 1 (F1) motor racing is restricting competition. The Commission has told the FIA, the official governing body of F1, that it is abusing its dominant position both in the sale of TV rights and in effectively putting a stranglehold on rival motor sport events.

Also under attack from the EC is motor racing supremo, Bernie Ecclestone. The Commission has written to Ecclestone saying that his two companies, the Formula One Administration and International Sportsworld Communicators, are also acting anti-competitively in their sale and promotion of F1 broadcasting rights throughout EU.

The FIA requires that anyone wishing to take part in an international motor sports event should hold an FIA licence. As the FIA is the sole regulatory body of international motor racing in Europe, this system often deters organisers from staging any rival events, according to the EC.

The Commissioner responsible for competition, Karel Van Miert, says: “We have found evidence of serious infringements of EU competition rules, which could result in substantial fines.” Furthermore, if the EC’s final decision remains this way, there would almost certainly be a shake-up of the way in which broadcasting rights are promoted and sold to television companies throughout Europe.

European Commission: 0171 973 1992