ECJ Upholds German FA Agent Regulations

The Court of Justice of the European Union (CJEU) has ruled that the German Football Association’s (DFB) rules governing football agents can be compatible with EU competition law, provided the measures are genuinely aimed at achieving legitimate public interest objectives.

The Court of Justice of the European Union (CJEU) has ruled that the German Football Association’s (DFB) rules governing football agents can be compatible with EU competition law, provided the measures are genuinely aimed at achieving legitimate public interest objectives.

The judgment stems from a legal challenge brought by sports management firm ROGON, together with an Austrian company and an individual football agent. They argued that the DFB’s regulatory framework, which includes provisions on agent licensing, registration, remuneration, and relationships with clubs and players, restricted competition in breach of EU antitrust rules. A German court referred a number of legal questions to the CJEU for clarification.

The CJEU held that regulations adopted by a sports governing body are not automatically caught by EU competition rules where they are necessary and proportionate to pursuing legitimate objectives in the public interest. The Court recognised that sports federations may need to introduce rules that affect the markets they oversee in order to safeguard the proper organisation and integrity of the sport.

The CJEU held that regulations adopted by a sports governing body are not automatically caught by EU competition rules where they are necessary and proportionate to pursuing legitimate objectives in the public interest.

The decision adds to a growing body of CJEU case law examining the intersection of sports governance and EU competition law. In recent years, governing bodies’ regulations have increasingly been challenged before European courts.

Among the most significant recent rulings, the CJEU found aspects of FIFA’s international transfer system to be incompatible with EU law, a decision that may reshape the transfer market by reducing transfer fees and strengthening players’ bargaining positions.

the CJEU found aspects of FIFA’s international transfer system to be incompatible with EU law, a decision that may reshape the transfer market.

More recently, the Court also held that a temporary no-poach agreement between Portuguese football clubs during the COVID-19 pandemic, under which clubs agreed not to sign players who had unilaterally terminated their contracts with another club, could be compatible with EU competition law where it pursued legitimate public interest objectives and was necessary and proportionate.

The latest judgment indicates that sports regulations affecting competition will continue to be assessed on a case-by-case basis, with particular emphasis on whether they pursue legitimate public interest goals and whether the restrictions imposed are necessary and proportionate to achieving those objectives.