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Eurosceptic Bloggers

Wednesday, August 17, 2005

Uncompetitive Football

In France, EDF has a monopoly in the Electricity Business and Gaz de France in Natural gas. In Italy, the Governor of the Central Bank stops those nasty grasping Dutch pirates from buying Italian Banks. Restrictive practises of all kinds stop the creation of truly competitive markets in all kind of sectors in Germany. The competition Commissioner has a full work load indeed. So why this?
The European Commission is putting pressure on the English Premier League to change the way it sells televised football rights, or face possible antitrust action for breaking EU competition law.
Even if you agree with the commission’s logic it’s hardly priority number one is it. Besides, I don’t follow the logic at all. Logically the Premier league could be attacked as being a Cartel, pooling their resources and bargaining together. Its not that I’m arguing for such action to be taken, it’s just the rationale would be understandable. But that’s not what has got their goat.
The commission is looking for more concessions, with some reports claiming it wants to limit any company's ownership to 50% of live games in future.
They don’t like competition in other words, it creates losers and we can’t have that can we. How dare Sky sell an exclusive deal. Lets look at the disadvantages of selling the games to more than one company.
  1. The sport will get less money.
  2. Fans will need to purchase services from more than one company.
  3. More money will be spent to consume the same service (Lost Utility).
  4. A creator of content, no longer owns their intellectual property.
But lets not worry about that, Sky is owned by that horrible Australian fellow, you know the one whose newspapers are so Xenophobic and Little Englander.

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