EU moves to cut Premier League TV cost

The EU today started moves to make live Premier League football available to more TV viewers at a lower cost, calling the current joint selling of television rights “tantamount to price fixing.”

The European Commission launched legal proceedings against the Premier League to challenge one of the richest media contracts in soccer.

It comes on the heels of an EU deal with the UEFA, the European football federation to open up the Champions League to more competition.

“This case is equally important considering the huge significance of the English Premier League not just in Britain but also on the Continent,” said Commission spokeswoman Amelia Torres.

The EU antitrust office said this summer’s deal with UEFA would end a restrictive system and open up live game telecasts to more broadcasters. It want a similar effect when it comes to the Premier League, one of the most popular competitions in the world.

“Because of the joint selling of the rights to the Premier League, only 25% of the matches are shown on television,” said Torres, complaining there is no live Premier League on free to air television.

BSkyB began covering top flight games when the Premier League was born in the 1992-93 season.

Its current €1.7bn contract to screen live games ends in 2003-4 season.

The EU’s antitrust office said today it sent a ”statement of objections” to the Premier League, the first step in a legal procedure which might take years before it comes to a conclusion.

The Premier League has two and half months to respond, after which the Commission will decide whether to launch further investigations.

The EU first took an interest in the Premier League contract last year and hopes to be able to find an amicable solution which will benefit consumers and television companies alike. That means the current system of exclusivity must disappear, the EU Commission said.

“The Commission considers that the current joint selling arrangements are anti-competitive because they have the effect of foreclosing the market for other broadcasters and ultimately limit media coverage of soccer events to the detriment of consumers,” it said in a statement.

“Joint selling of the media rights in this key sport is tantamount to price fixing,” added Torres.

Under the Champions League deal the Commission reached, UEFA retains the right to sell exclusive free and pay-TV rights to a single broadcaster per country for one ”gold-match” each night.

But it will have to open up bidding for other games, played at the same time to other broadcasters.