Tuesday February 1st, 2000

By Michael Mann

Motor sport's ruling body on Tuesday dismissed as "lamentable" European Commission charges that it had broken EU antitrust rules.

Raising the stakes in a bitter dispute with Brussels, the International Automobile Federation (FIA) added that it was confident it would win its case in the courts.

It said EU competition officials assigned to the case had "behaved grossly, improperly and displayed incompetence amounting to abuse".

"This sort of thing would look bad in the darkest recesses of the Third World," FIA President Max Mosley told reporters. "We don't want special favours. We just want a rational and unbiased assessment of our case."

The Commission launched proceedings against the FIA and the Formula One companies run by Bernie Ecclestone - a vice-president of FIA - on June 30 last year, issuing a so-called "statement of objections".

Former EU Competition Commissioner Karel Van Miert warned that unless the rules and contracts were changed, the organisers of Grand Prix racing could face heavy fines for violating competition law.

Statements of objections were sent to the FIA and Formula One Administration Ltd (FOA), which sells broadcasting rights for Grands Prix, and International Sportsworld Communicators Ltd, which markets TV rights for other motor sports.

List Of Concerns

The Commission said the FIA had the power to prevent competition by threatening to withdraw the licences of circuit owners, teams and drivers.

EU regulators also contested the notion that FIA should own the TV rights, transferred to Ecclestone and ISC for Formula One, to all championships bearing its name.

"We have never blocked a single series which could compete with F1," Mosley said. "It's pure rubbish to say we abusively use our power to obtain TV rights. That's a wonderful example of how the Commission doesn't understand how F1 works.

In a strongly-worded five-page letter to new Competition Commissioner Mario Monti accompanying FIA's responses, Mosley said the statement of objections was "hopelessly confused," failed to show FIA holds a dominant position and relied on complaints from just two people.

He demanded that Monti launch an independent probe of his services' conduct, replace officials following the case, order a hearing in the presence of the press and give FIA access to documents so far not made public.

"After the hearing, the next step will be the European Court; we're confident we'll win there," Mosley said.

FIA filed its rules for EU regulatory approval in 1994. They remained largely unchallenged until 1997 when Ecclestone notified his own agreements with the FIA to seek legal clearance ahead of the planned flotation of Formula One.

In October, Ecclestone agreed to sell half of Formula One to Deutsche Bank's Morgan Grenfell Private Equity in a $1.3 billion deal designed to put flotation back on track.

In May, Formula One launched a $1.4 billion eurobond secured on future revenues from commercial and broadcasting rights.