Show Jumping League Files Complaint against the Federation Equestre Internationale over Anti-Competitive Exclusivity Clause

Jun 12, 2015

Global Champions League (GCL), the new show jumping league and team competition developed by Global Champions Tour (GCT), has filed a complaint with the Belgian Competition Authority in Brussels accusing the sport’s governing body, the Federation Equestre Internationale (FEI), of breaching European Union competition law.
 
The complaint centers on the FEI imposing its so-called “exclusivity clause” on riders to prevent them competing in events not organized by the FEI itself.
 
The FEI exclusivity clause prohibits riders, horses, and officials from taking part in any non-FEI approved event for a period of six months prior to their participation in an FEI event. Given the year-round nature of world class competitive show jumping, the exclusivity clause effectively bans riders from taking part in non-FEI events, according to GCL.
 
The league also claims that “the FEI acts both as the governing body of the sport, setting the rules for all competitions, while also running its own commercial show jumping events in competition with other organizations it governs.”
 
The plaintiffs are seeking an interim injunction which, if granted, would prevent the FEI from penalizing any riders, horses, owners or officials who did participate in non-FEI approved events until the case is resolved.
 
For now, “as a result of the FEI choosing not to address sanctioning the team competition in a timely manner, and further compounded by the looming threat to riders, horses, and officials posed by the FEI’s anti-competitive exclusivity clause, the launch of GCL and the team competition” has been delayed, according to the league.
 
Sports business attorney Jean Louis-Dupont, who is representing GCL in this matter, with co-counsel Filip Tuytschaever, a competition law attorney and professor, noted in a press release that “the FEI exclusivity clause is a clear breach of EU competition law and is therefore illegal.
 
“It stifles the ability to organize and market any events in competition to those run by the FEI itself. Recent precedents involving show jumping events in both Ireland and Italy back our case.”
 
Dupont is hardly new to such high-profile cases. He recently helped lead the legal team that brought about the Bosman ruling that banned restrictions on foreign EU players within national leagues and allowed players in the EU to move to another club at the end of a contract without transfer fee. He also represented the G-14, the association of top European football teams, in the Charleroi case which resulted in an agreement between FIFA and UEFA enabling clubs to receive compensation when players are provided for national team competitions.


 

Articles in Current Issue