PROFAA vs FIFA
CAS 2023/O/9370
Case Summary
[Competition Law]
[Sports Law]
Facts
The case involves a dispute between the Professional Football Agents Association (PROFAA) and the Fédération Internationale de Football Association (FIFA) regarding the legality of the FIFA Football Agents Regulations (FFAR) enacted on December 16, 2022. PROFAA, representing the interests of global football agents, claims that the FFAR imposes detrimental restrictions on agents and violates EU and Swiss competition laws. Key provisions under scrutiny include Article 15, which introduces a mandatory cap on service charges, and Article 12, which limits agent activities to licensed individuals only. The case escalated after the Regional Court of Dortmund issued an injunction against certain FFAR provisions, arguing they restricted economic rights contrary to EU law.
Issues
The central issue is whether the FFAR regulations governing football agents comply with FIFA regulations and EU and Swiss competition laws. Specifically, the claimants argue that the FFAR violates:
- Swiss competition law by imposing service charge caps and restricting agent activities.
- EU law by curtailing freedom of economic activity and contract.
- The Treaty on the Functioning of the European Union (TFEU), particularly Articles 101 and 102, concerning restrictive agreements and abuse of dominant position.
Relevant Legal Provisions
The claimants assert violations of several legal frameworks:
- Swiss Competition Law: Allegations include breaches of the Cartel Act concerning restrictive agreements and abuse of dominance.
- EU Competition Law: Claims include violations of Articles 101 and 102 TFEU, which prohibit agreements that restrict competition and abuse of a dominant market position.
- Italian FIGC Regulations: Conflicts with national regulations highlight tensions between FIFA’s global standards and local governance autonomy.
Judgment
The Court of Arbitration for Sport (CAS) ruled in favour of PROFAA, determining that certain provisions of the FFAR were incompatible with EU competition law. The court found that the mandatory cap on service fees imposed by Article 15 restricted agents' ability to compete fairly, thereby violating Article 101 TFEU. Additionally, it concluded that FIFA's dominant position allowed it to impose unfair trading conditions on agents, constituting an abuse under Article 102 TFEU. This landmark decision emphasizes the need for FIFA to align its regulations with competition laws while respecting agents' economic rights. The ruling may prompt significant reforms in how FIFA governs football agents globally, potentially leading to a more equitable regulatory framework.
Nitya Desai
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