Competition

 Law  –  Legal  Update    

Effective  competition  provides  goods  and  services  at  cut  prices,  raises  quality  and  expands  
customer  choice.    

The  purpose  of  competition  law  is  to  ensure  that  all  economic  actors,  pursuant  of  their  activities,  do  
not  prevent  the  established  Common  Market  within  the  EU  from  creating  an  open  market  of  services  
and  goods.  Articles  101  and  102  of  the  Treaty  on  the  Functioning  of  the  European  Union  help  ensure  
that  Article  3(1)(g)  EC  requiring  a  ‘system  ensuring  that  competition  in  the  Common  Market  is  not  
distorted’  is  upheld.  They  prohibit  any  decisions  between  undertakings  and  associations  which  have  
the  object  or  effect  of  affecting  trade  between  member  states.    

Competition  law  and  anti-­‐competitive  restrictions  on  trade  has  been  hurtled  into  the  lime-­‐light  
recently  with  the  case  of  Karen  Murphy.  Facts  aside,  one  of  the  main  issues  of  this  case  is  whether  
Sky  and  the  English  Premier  League  have  been  acting  in  an  anti-­‐competitive  way  in  restricting  the  
competition  between  other  broadcasters  who  may  bid,  or  wish  to  bid,  for  the  rights  to  show  live  
premier  league  games  in  the  UK.    

Sky  currently  own  5  of  the  6  broadcasting  rights  offered  by  the  Premier  League.  This  is  largely  down  
to  an  agreement  made  with  the  European  Commission  in  2005  which  stated  that  no  one  broadcaster  
could  own  all  of  the  rights;  it  is  arguable  that  without  this  agreement    that  Sky  could  own  all  of  the  
packages  available  from  the  Premier  League.  In  addition,  Sky  and  the  Premier  League  have  an  
exclusivity  agreement  which  allows  Sky  to  match  the  financial  term  of  any  bid  from  any  third  party  
when  renewing  the  agreement.    

The  question  for  the  ECJ  in  the  forthcoming  case  is  whether  this  is  a  specific  breach  of  Articles  101  
and  102,  in  which  Sky  can  be  seen  to  be  acting  in  an  anti-­‐competitive  way,  specifically  in  restricting  
consumer  choice  and  creating  a  barrier  in  the  Common  Market.    

As  early  as  1966,  the  ECJ  ruled  on  the  legality  of  a  similar  exclusivity  agreement  in  Case  56/65  Societe  
La  Technique  Miniere  v  Maschinenbau  Ulm  GmbH.  It  came  to  the  conclusion  that  an  exclusivity  
agreement  which  affects  the  trade  between  Member  States  could  be  an  infringement  of  Article  101  
TFEU  (then  Article  85).  In  the  immediate  case,  the  ECJ  must  decide  whether  the  exclusivity  
agreement  between  Sky  and  the  English  Premier  League  affects  the  functioning  of  the  Common  
Market.    

The  Advocate  General,  Julianne  Kolkot,  has  already  given  her  opinion  on  the  case.  She  believes  that  
the  agreement  is  an  infringement  of  the  Articles,  and  the  ultimately  the  real  ‘losers’  are  the  
consumers  –  the  football  fans  in  the  UK  who  can  only  view  live  Premier  League  matches  in  full  if  they  
subscribe  to  Sky.    

Ultimately,  the  decision  is  up  to  the  European  Court  of  Justice.  If  a  decision  does  go  in  favour  of  Ms  
Murphy,  we  could  see  a  revolution  in  broadcasting  rights  not  just  in  the  UK,  but  throughout  the  EU.  

A  decision  is  set  to  be  made  later  this  year.