The application of European competition law to the Olympic Movement
Did you know?
The Olympic Movement is defined as the concerted, organized, universal and permanent action, exercised under the supreme authority of the International Olympic Committee (IOC), of all individuals and entities inspired by the values of Olympism.
In particular, the IOC is responsible for overseeing the organization of the Olympic Games (OG). Its main role is to promote Olympism, a philosophy of life that combines sport, culture and education, encouraging fair play, tolerance and other fundamental values.
The IOC recognizes a number of International Sports Federations (IFs), which ensure the integrity of their respective sports worldwide, as well as a number of National Olympic Committees (NOCs), which are responsible for developing, promoting and protecting the Olympic Movement in their respective countries.
To be recognized, these entities must comply with the Olympic Charter and meet a number of criteria, such as organizing regular national or international competitions, promoting Olympic values and implementing sporting rules that guarantee fair play and athlete safety.
The specificities of the sports sector
Sport, including the Olympic Movement, is distinguished from other sectors by its important cultural, integrating, social and health-related role.
Special rules (rules of the game, selection criteria for sporting competitions, rules governing the composition of national teams, anti-doping regulations) and a certain degree of legal autonomy (Court of Arbitration for Sport) are applicable to the sporting field, justified on non-economic grounds and by the legitimate objectives pursued, such as equal opportunities, the uncertainty of results, the integrity and objectivity of the competition, or respect for ethical values.
European competition law applies to the economic activities of sports organizations
IFs and NOCs are sports organizations which, under European competition law, carry out an economic activity.
Indeed, these organizations are involved in profit-making activities linked to sport, such as the organization of sporting events generating revenue through ticket sales, television broadcasting rights, advertising, sponsorship, licensing rights for derivative products, etc. Amateur sport is therefore subject to the same economic activity as professional sport. Amateur sport is therefore an economic activity in the same way as professional sport.
Therefore, even though the sports sector, and the Olympic Movement in particular, presents certain specificities in terms of its cultural and social role and the special rules applicable to it, sports organizations must ensure compliance with competition law in the exercise of their activities.
Illustrations
Non-economic activity excluded from the application of competition law
Anti-doping regulations adopted by the IOC
- The IOC is entitled to adopt anti-doping regulations.
- As such, the IOC is not engaged in an economic activity, even though the regulations limit athletes’ freedom of action and have the inherent effect of restricting potential competition between them, with the aim of preserving the fair, honest and objective conduct of sporting competition, ensuring equality of opportunity between athletes, protecting their health and upholding the ethical values at the heart of sport, which include merit.
Illustration: CJEU, July 18 2006, Meca Medina, aff. C-519/04 P
Economic activity falling within the scope of competition law (Cartel)
Fixing of ticket prices by the organizing committee
- The committee of the organizing country may entrust the NOCs of other countries with the resale of tickets, but must allow them to resell them at a price lower than their face value if necessary.
Illustration: European Commission, Ticketing system for the Athens Olympic Games, aff. COMP/D-3/38.468
Paris 2024: Starting with the Paris 2024 Games, tickets for the Olympic Games go on sale on a single, dedicated platform, operated and managed by the organizing country’s committee, at standardized prices. The NOCs of other countries are no longer involved in the resale of tickets.
International Federations and conflicts of interest
- IFs must not subject athletes’ participation in competing events organized by third parties to a system of prior authorization and sanctions.
- If they are given this power, it must be accompanied by appropriate limits, obligations and controls.
Illustration: CJEU, Dec. 21, 2023, International Skating Union, aff. C-124/21 P
Economic activity falling within the scope of competition law (Abuse of dominant position)
Restriction of advertising by athletes and their sponsors
- The IOC and the international federations hold a dominant position on the market for the organization and marketing of the Olympic Games.
- Directives issued by these organizations prohibiting the use of an athlete’s name, image or sporting performance for personal advertising purposes during the Olympic Games and a few days before the Games are likely to constitute an abuse of a dominant position.
Illustration: German Competition Authority, 27 February 2019, DOSB / IOC
Granting special or exclusive rights to sports associations
- States may grant exclusive or special rights to sports associations, thereby conferring on them a dominant position, without allowing these associations to abuse this position, for example by exercising the rights in question in such a way as to prevent potential competitors from gaining access to the market concerned or to related or neighboring markets.
Illustration: CJEU, Dec. 21, 2023, European Super League Company, aff. C-333/21
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