92/521/EEC: Commission Decision of 27 October 1992 relating to a proceeding under Article 85 of the EEC Treaty (IV/33.384 and IV/33.378 - Distribution of package tours during the 1990 World Cup) (Only the French and Italian texts are authentic)

• Published date: 12 November 1992
• Official Gazette Publication: Gazzetta ufficiale delle Comunità europee, L 326, 12 novembre 1992,Diario Oficial de las Comunidades Europeas, L 326, 12 de noviembre de 1992,Journal officiel des Communautés européennes, L 326, 12 novembre 1992

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92/521/EEC: Commission Decision of 27 October 1992 relating to a proceeding under Article 85 of the EEC Treaty (IV/33.384 and IV/33.378 - Distribution of package tours during the 1990 World Cup) (Only the French and Italian texts are authentic)

Official Journal L 326 , 12/11/1992 P. 0031 - 0042

COMMISSION DECISION

of 27 October 1992

relating to a proceeding under Article 85 of the EEC Treaty

(IV/33.384 and IV/33.378 - Distribution of package tours during the 1990 World Cup)

(Only the French and Italian texts are authentic)

(92/521/EEC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Economic Community,

Having regard to Council Regulation No 17 of 6 February 1962, first Regulation implementing Articles 85 and 86 of the Treaty (1), as last amended by the Act of Accession of Spain and Portugal, and in particular Article 3 thereof,

Having regard to the application made by Pauwels Travel BVBA on 28 November 1989, in accordance with Article 3 of Regulation No 17, for a finding that Article 85 had been infringed,

Having regard to the Commission's decision of 22 January 1991 to initiate a proceeding in this case,

Having given the undertakings concerned the opportunity to make known their views on the objections raised by the Commission, pursuant to Article 19 (1) of Regulation No 17 and Commission Regulation No 99/63/EEC of 25 July 1963 on the hearings provided for in Article 19 (1) and (2) of Council Regulation No 17 (2),

After consulting the Advisory Committee on Restrictive Practices and Dominant positions,

Whereas:

I. THE FACTS

A. Subject of the Decision

(1) On 28 November 1989, the Commission received a complaint from the travel agency Pauwels Travel BVBA ('Pauwels Travel`) against:

- FIFA Local Organizing Committee Italia `90,

- 90 Tour Italia SpA,

- NV CIT Belgique.

(2) The complaint, based on the provisions of Article 3 of Regulation No 17, related to the ticket distribution system applied during the FIFA World Cup held in Italy in 1990.

(3) Pauwels Travel wanted to put together and sell in Belgium World Cup package tours comprising transport, accommodation and entrance tickets to the stadia in which the various matches were to be played. However, it found that the ticket distribution system that had been decided on did not allow travel agencies to acquire stadium entrance tickets for the purpose of putting together package tours.

(4) The attempts made by Pauwels Travel to sell such package tours by procuring entrance tickets through parallel channels resulted in an action to cease and desist being brought before the Belgian national courts by the travel agency authorized by the World Cup organizers to sell package tours in Belgium.

(5) This Decision does not relate to the whole of the ticket distribution system, but only to the contracts through which the World Cup organizers conferred on the company 90 Tour Italia world exclusive rights for the supply of stadium entrance tickets for the purpose of putting together package tours.

(6) The market on which the effects of the contracts must be assessed is thus that for the sale of package tours to the World Cup held in Italy.

In accordance with the case law of the Court of Justice, in particular in Case 23/67, Brasserie de Haecht v. Wilkin (1), however, the whole of the distribution system must be examined and the contracts must be assessed in the context within which they operated.

B. General organization of the World Cup

(7) On 5 August 1983, the International Federation of Association Football (Fédération internationale de football association - FIFA) drew up the specifications and conditions for the federation organizing the 1990 World Cup.

The specifications and conditions, signed by the General Secretary of FIFA, state that the World Cup is a FIFA competition and that FIFA is to appoint one of the national associations affiliated to FIFA as the organizer (executive agent) of the World Cup.

(8) Under Article 1.1 of the specifications and conditions, the national association appointed may carry out its task directly itself or it may request FIFA to appoint a local organizing committee comprising representatives of the national association concerned and of FIFA.

(9) The specifications and conditions also stipulate that the national association appointed and its local organizing committee are placed under the control of the FIFA World Cup organizing committee, which has the last word in all matters.

(10) On 19 May 1984, FIFA appointed the Federazione italiana gioco calcio (FIGC) as organizer of the 1990 World Cup.

(11) In accordance with the FIFA specifications and conditions for the organization of the World Cup, FIFA and the FIGC agreed to set up a local organizing committee on 3 December 1984.

(12) The document establishing the local organizing committee provides that the committee is to comprise a maximum of 15 members, including five from FIFA and 10 from Italy, and that its head office will be in Zurich under the auspices of FIFA, with a branch office in Rome.

(13) In fact, the number of members was limited to 11, i.e. two from FIFA and 9 from the FIGC.

(14) The setting up of the local organizing committee was ratified by the FIFA executive committee at a meeting held in Zurich on 28 April 1985, and on 11 June 1985 FIFA drew up the regulations governing the organization and operation of the local organizing committee for the 1990 World Cup.

(15) The function of the local organizing committee is specified in Article 3 of the regulation as being to perform all activities relating, directly or indirectly, to the technical and logistical organization of the World Cup in Italy in 1990, in compliance with the operating limits laid down in the specifications and conditions drawn up by FIFA and the 1990 FIFA World Cup regulations.

(16) Amongst such activities, the local organizing committee is in particular required to propose to FIFA the plan for distributing and setting entrance tickets and to deal subsequently with the implementation of the plan.

(17) Lastly, a number of aspects of relations between FIFA and the local organizing committee were covered in a document entitled 'Agreement between FIFA and the local organizing committee Italia 90`, signed by the administrative director of the local organizing committee and the General Secretary of FIFA.

With regard to the sale of tickets, the document stipulates that the directives governing the sale of tickets and their prices must be approved by FIFA (a requirement which FIFA considered essential).

C. The parties concerned

(18) FIFA is a federation of national football associations from 158 countries and is based in Zurich. Its object is to promote football and, for this purpose, to organize the World Cup every four years.

FIFA's revenue derives from the dues paid by its members and from a percentage of revenue from international matches and world championships.

(19) The Federazione italiana gioco calcio (FIGC) represents the various Italian football associations.

It is based in Rome and has a Chairman and a General Secretary.

(20) The Compagnia italiana turismo SpA (CIT) is a subsidiary of the Ente ferrovie dello Stato.

It is one of the main travel agencies in Italy.

CIT Italia also has subsidiaries in other European countries, including Belgium, France and the United Kingdom.

(21) Italia Tour SpA (Italia Tour) is a subsidiary of Alitalia - Linee Aeree Italiana SpA, which also carries out travel agency activities within and outside Italy.

(22) 90 Tour Italia SpA (90 Tour Italia) is a company created jointly by CIT and Italia Tour for the purpose of marketing package tours to the 1990 World Cup. Its existence is closely bound up with the organization of the 1990 World Cup.

D. The financing of the World Cup

(23) The expenditure involved in establishing the infrastructure required for the World Cup was borne by the organizing federation or the organizing country. This applied to the work involved in converting grounds, improving roads, hotels, etc.

(24) The organizing federation received the following revenue:

(a) some 15 % of net competition profits, calculated as follows:

- proceeds from television rights plus the sale of tickets,

- minus the expenses entailed in organizing the World Cup;

(b) the commercial exploitation in Italy of the 1990 World Cup emblem, created by the organizing federation;

(c) a proportion of match revenue to cover the reimbursement of State, provincial and municipal taxes and the hire of grounds;

(d) a percentage of ticket revenue, to be determined with FIFA as a contribution towards the organization expenses proper.

(25) Contracts relating to advertising and the commercial exploitation of emblems and television contracts were concluded directly by FIFA.

(26) Estimated total World Cup revenue was Sfr 220 million, made up as follows:

- Sfr 75 million from the sale of tickets,

- Sfr 55 million from the sale of advertising rights,

- Sfr 90 million from the sale of television rights.

E. The general ticket distribution system

(27) The general ticket distribution system covered a total of some 2 700 000 tickets broken down as follows:

- 12 % distributed in Italy by the national football associations,

- 4 % distributed in Italy by the official World Cup sponsors,

- 34 % distributed in Italy by the Banca Nazionale del Lavoro ('BNL`),

- 15 % distributed outside Italy by the national sport associations,

- 5 % distributed outside Italy by the main European football association,

- 5 % distributed outside Italy by BNL or its representatives,

- 25 % distributed outside Italy by 90 Tour Italia as part of package tours.

F. The conditions governing distribution of tickets not included in package tours

(28) The distribution of tickets by the football associations was subject to...