Brussels, 31/10/2001 (Agence Europe) - The European Commission has announced that it has closed the anti-trust investigations into certain regulations and commercial arrangements involving Formula One and other motor sport series. This follows after the Fédération Internationale d'Automobile (FIA) and the Formula One companies agreed to make certain changes. The investigation was formally opened in June 1999 with the Commission claiming that the FIA had abused its powers regarding the organisation and broadcasting of motor races. The FIA had placed unnecessary restrictions on promoters, circuit owners, vehicle manufacturers and drivers that impeded competitions organised by other bodies. It also imposed certain provisions in the commercial agreements with television broadcasters, which contravened European rules. Whilst the Commission recognises the need for organisations such as the FIA to regulate the organisation of its sport, its sporting rules and competitions, it also recognises the validity of third party challenges to certain rules and commercial agreements that impede competition. The spectacular transformation of sports such as football and motor racing into "big business" inevitably obliges bodies organising them to respect European Union competition rules. Following numerous meetings with Competition Commissioner Mario Monti (see EUROPE 29-30 January, p. 12), the FIA agreed to modify its rules to bring them into line with EU law. The modifications introduced by the FIA will guarantee that: the role of the FIA will be limited to that of a sports regulator, with no commercial conflicts of interest; the FIA rules are not used to prevent or impede new competitions unless justified on grounds related to the safe, fair or orderly conduct of motor sport; internal and external appeals procedures against FIA decisions are strengthened. The FIA has sold its rights in the FIA Formula One World Championship and will allow the creation of potential inter- and intra-brand competition between Formula One and similar races and series. It will, therefore, have no influence over the commercial exploitation of the Formula One Championship. The FIA and SLEC/FOA, the companies in charge of the commercial exploitation of Formula One, agreed to various changes in the commercial agreements for Formula One designed to lower or remove barriers to entry for the creation and operation of other motor sport series. The FOA has also agreed to modify current broadcasting agreements that limit the rights of other companies to broadcast sporting events. When current contracts expire, broadcasters in various countries will be invited to tender for TV rights. The Commission has taken a positive view of these changes and now considers it inappropriate to continue its investigation. It will, however, be scrutinising future developments to ensure that these changes work in practice.