Summary
On 15 May 2025, Advocate General Emiliou released his opinion regarding the controversial no-poach agreement among Portuguese football clubs, highlighting a shift in the European Commission’s approach to labour market offences under EU competition law. The AG’s perspective advocates for a context-based analysis when evaluating the compatibility of no-poach agreements, suggesting that not all such arrangements are inherently anti-competitive. While AG opinions are advisory, they often influence judicial decisions in practice.
No-Poach Agreements Among Portuguese Football Clubs: Background
In April 2020, major Portuguese football clubs established a no-poach agreement in response to COVID-19, prohibiting them from hiring players who terminated their contracts due to pandemic-related issues. Following the Portuguese competition authority’s classification of this agreement as anti-competitive, the clubs appealed for judicial clarification on its nature and potential exemptions.
Key Takeaways from the Advocate General’s Opinion
- The AG recognises that while most no-poach agreements are anti-competitive based on their nature, context is crucial in determining their legality.
- He suggests that the economic argument against no-poach agreements stems from potential harm to market competition, including reduced efficiency and lower wages.
- The AG opposes a blanket classification of such agreements as “by object” restrictions without considering the specific context and objectives.
- There is potential for justification under Meca-Medina case law if the agreement serves legitimate public interest objectives and does not exceed necessary restrictions.
Context and Relevance
This article is significant for stakeholders in the football and broader labour market, as it illustrates a critical shift in the interpretation of no-poach agreements under EU competition law. AG Emiliou’s opinion underscores the importance of context in these cases, offering valuable insights for organisations navigating anti-competitive regulations in light of evolving policies. Given the European Commission’s increasing scrutiny on such arrangements, this discussion is especially relevant.
Why should I read this?
If you’re involved in sports, business, or competition law, this article is a must-read! It cuts through the jargon to highlight an important shift in how no-poach agreements might be assessed in the EU. By presenting a more nuanced view, it sheds light on potential legal strategies that could save clubs and businesses from hefty fines while still allowing necessary collaborations during unprecedented situations like a pandemic.