Newschevron_rightNo-poach agreements are not automatically 'by object'โฆ
No-poach agreements are not automatically 'by object' restriction of competition
In its preliminary ruling of 30 April 2026 in the ๐๐ ๐๐จ๐ง๐๐๐ฅ๐ ๐๐๐ฌ๐, the European Court of Justice (ECJ) reiterated that a by object qualification is never automatic or presumed. It must be interpreted strictly and assessed on the basis of (i) the content of the agreement, decision or practice, (ii) the economic and legal context and (iii) the objectives pursued.
The case concerned a temporary no-poach commitment between Portuguese professional football clubs in 2020. While the ECJ acknowledged that such an arrangement constitutes a manifest restriction of a key competitive parameter, namely the recruitment of players, and may also have an indirect impact on remuneration, it also made one thing very clear: ๐๐จ๐ง๐ญ๐๐ฑ๐ญ ๐๐ง๐ ๐จ๐๐ฃ๐๐๐ญ๐ข๐ฏ๐๐ฌ ๐ฆ๐๐ญ๐ญ๐๐ซ.
Here, the COVID-19 context and the objective of ensuring a fair conclusion of the suspended competition are emphasised by the ECJ. The suspension of the ongoing competition created a risk that clubs would lose end of contract players before the season could be completed to the detriment of fair competition. The ECJ therefore gave strong guidance to the referring Portuguese court arguing against a by object qualification in the present circumstances.
In case of a by effect qualification, the ECJ reiterated that the pursuit of legitimate objectives may, in certain circumstances, outweigh restrictive effects.
The judgment also contains an important reminder on the broad understanding of what may constitute a decision of an association of undertakings. Although the no-poach concerned an agreement between clubs, the presence of the associationโs president in the public announcement was sufficient for that characterisation.
๐๐๐ข๐ง ๐ค๐๐ฒ ๐ญ๐๐ค๐๐๐ฐ๐๐ฒ๐ฌ:
1. No-poach agreements remain high-risk.
2. By object infringements are never automatic or presumed.
3. Associations should be careful: even a small role may have large consequences.
๐ฌ ๐๐ฎ๐๐ฌ๐ญ๐ข๐จ๐ง๐ฌ? Feel free to reach out to our competition team or your usual contact person at ๐๐จ๐ง๐ญ๐ซ๐๐ฌ๐ญ.
#EUlaw #CJEU #ECJ #competitionlaw #sportslaw #Tondela #contrastupdate
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