The French Football Federation wins a battle against Viagogo

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26.12.16 13:07 Comment (s)
lawyer and sale of French team match tickets

The fact that a company sells tickets for matches, in particular for the French football team, when it does not have the authorization of the Federation, which enjoys the monopoly of operating these matches on the national territory, constitutes a fault engaging its tort liability. This is in substance the decision rendered by the Tribunal de Grande Instance of Paris on May 20, 2014.

Sale of tickets for the French team without the agreement of the FFF

On March 9 and 10, 2011, the French Football Federation gave Viagogo formal notice to withdraw from its website the offer to sell match tickets for the final of the Coupe de France.

In 2013, the Federation refused to enter into a partnership with Viagogo concerning the sale of tickets for the football matches it organizes on the national territory. Viagogo, however, continued to offer tickets for certain matches organized by the Federation.

In October 2013, the FFF then gave her formal notice to immediately withdraw tickets for the France-Ukraine match.

In November 2013, the Federation again gave her formal notice to withdraw tickets for the France-Netherlands match from sale.

On November 15, 2013, Viagogo refused to withdraw the affected tickets from sale on the grounds that it would not violate any US regulations.

The French Football Federation then had the Viagogo company assigned on a fixed day, on 12 December 2013, before the Tribunal de Grande Instance of Paris.

FFF vs. Viagogo

The Federation's operating monopoly

The Federation considers that Viagogo did not only have the quality of "host"from the sale of tickets but was indeed a"editor", by actively promoting sporting events (creation of a friendly matches section, writing of teaser texts, sending prospecting emails to its subscribers, etc.). The Company would therefore play"an important role in the realization of the transactions which it optimizes and secures against remuneration".
In addition, the French Football Federation recalls that it owns the rights to exploit the matches which "includes the right to market tickets for competitions it organizes". It is thus the only one able to authorize third parties to resell tickets.

The Court confirms this position by recalling Article L.333-1 of the Sports Code which "confers on the FFF a monopoly of exploitation of the friendly and qualifying matches of the French teams, male, female, junior, hope or senior, as well as the Coupe de France, which it organizes in France, so that it is alone authorized to market tickets relating to these different competitions".

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Unauthorized resale ... criminally reprehensible

The Court also specifies that article L.313-6-2 of the Penal Code "represses the fact, in a customary manner, of selling, offering for sale or exhibiting for sale or transfer or providing the means for the sale or transfer of securities of access to a sporting event","in the usual way and without permission [...] of the organizer or owner of the exploitation rights of this event".

However, Viagogo did not have any agreement from the French Football Federation. However, this did not prevent him from offering tickets for "international matches taking place at the Stade de France, involving the French team, at prices chosen by the seller, which may greatly exceed the nominal amount of the tickets".

For the Tribunal, this situation poses "clearly a security problem", the Federation not being able to control the identity of the ticket holders on the day of the matches.

There is also an image problem for the French Football Federation, "lThe public is entitled to wonder about the fact that, while it has a monopoly on the exploitation of the matches of the France team, it allows tickets to be sold, well above their nominal value, on a commercial site, which receives substantial commissions, of 10% on the seller and 15% on the buyer, in total 25%, while providing a guarantee of payment and validity of the tickets sold".

No abuse of dominant position

In addition, the Court rejects the argument of the company Vaigogo which considered that the French Football Federation was in a dominant position on the market. Indeed, "since the matches of the French men's team represent only a few matches per year and the relevant market (...) appears to be more of football matches in general, where the FFF competes with all football clubs", the Federation cannot be considered in a dominant position on the market.

Viagogo's tort liability

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The Paris Tribunal de Grande Instance considered that "lThe Viagogo company, by accepting and promoting despite various formal notices from the FFF, the sale of match tickets for the French team, whose resale is prohibited, violated its operating monopoly"Fault"incurring tort liability".

However, the Court specifies that the French Football Federation has not suffered "material damage, since it was able to obtain from the sale of these tickets their nominal value". No damage interest is therefore awarded under this heading.

However, for the Court, "there is non-pecuniary damage resulting from the damage to the image of the FFF, resulting from the discovery on the site of the company Viagogo, by the customers of the matches of the France team, of tickets concerning them at very low prices. excessive in relation to their nominal amountl". 
This damage is assessed at the sum of 50 euros.

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