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Europe Daily Bulletin No. 7647
Contents Publication in full By article 18 / 55
GENERAL NEWS / (eu) eu/competition

International Automobile Federation attacks substance and form of Commission's objections concerning organisation and broadcasting of Formula One races

Brussels, 02/02/2000 (Agence Europe) - The International Automobile Federation (IAF) continues through the media its battle with the European competition services concerning the reoganisation of Formula One car events and their televised broadcasting. After receiving the Commission's apologies last July for having made premature statements (see EUROPE of 28 July, 1999), the IAF released to the press on Tuesday its response to the objectives presented in June by the European Commission (see EUROPE of 1 July 1999). Furthermore, it calls on the Commission to be able to present its response publicly during the hearing of the parties to be held in April.

On the substance of the matter, the IAF rejects the accusations made by the Commission, which fears that the Federation will make abusive use of its power to remove rival races from the market and to conquer exclusive broadcasting rights. The IAF takes as proof of its innocence the fact that not only none of the members had filed a complaint but that, also, the agreements governing Formula One were renegotiated in 1998 "to the satisfaction of all parties concerned". It feels that the Commission's accusations are based on a total misunderstanding of the world of car racing.

As far as the form of the matter is concerned, the IAF considers that the 108-page text of Commission grievances is "so muddled and badly put together as to be oppressive of the respondent". In addition, it not only fails to define a market but also fails in showing that the IAF enjoys any form of economic dominance, notes IAF President Max Mosley in a letter to Competition Commissioner Mario Monti.

Sending the ball into the Commission's court, the IAF president emphasises the shortcomings of the procedure, and in particular: a) the diffusion of confidential documents to the press; b) public intervention by former Competition Commissioner Karel Van Miert who said the case represents 'serious infringement"; c) the action taken by a Commission director so that a former complainant in this affair may take part in IAF meetings. Going straight to the point, the IAF president calls on Commissioner Monti to replace all the officials of the Competition Directorate General who dealt with the IAF dossier with officials from the legal services, and to issue the order that the IAF be allowed access to all the dossiers concerning it.

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