FIA and European Union bury the hatchet

The EU's main concern was that the FIA's commercial role in the sport, combined with its regulatory role, allowed Formula 1 boss Bernie Ecclestone's rights-holding company, Formula One Administration, to 'impose restrictive contracts with third parties.'

But following a final meeting between FIA president Max Mosley, Ecclestone and the EU's Competition Commissioner Mario Monti today (Friday), the EU says it is now satisfied that the FIA's future role will be limited to 'that of impartial motor sports regulator'. The parties have agreed on a series of measures which could be approved by the EU within weeks.

Talks between the FIA, FOA and the EU began in spring last year. Since then, the FIA has made significant changes to its rules and commercial arrangements, with further changes agreed in principle, while FOA has sold off all its interests in motorsport, bar F1. Prodrive boss David Richards bought the rights to the World Rally Championship from FOA last year.

Monti said: "The new rules, together with the significant number of undertakings offered by the parties and changes to the marketing and broadcasting arrangements, seem to us to amount in principle to a satisfactory solution. Accordingly, I intend to ask my services to prepare a Notice which will be published in a few weeks' time and which will invite third parties to submit their comments to the Commission."

In a response from the FIA, Mosley said: "Over the past six months, the FIA has changed its rules and commercial arrangements and will now take further measures to carry out its role as regulator of international motorsport without any commercial involvement. This will eliminate all possibility of future conflicts of interest.

"The constructive dialogue we have been able to establish with the European Commission brings to an end a long-running and difficult dispute and will provide stability for all international motorsport, including Formula 1," he added. "This is good for motorsport enthusiasts worldwide and for all those who work in one of the most popular of modern sports."

The commission has given its preliminary approval to the new rules and arrangements, but third parties will be asked for comments before final approval is given.



The FIA will strengthen the rights of organisers, circuit owners and participants and act impartially between all forms of motorsport for which it is the regulator.

The FIA will no longer have a commercial interest in F1 and remove any obstacles to other series competing with F1.

The FIA will retain its rights over its championships and the use of the FIA name and trademarks, but will waive all claims to broadcasting rights.

FIA decisions can be challenged in national courts.

FOA will only handle F1, and Bernie Ecclestone will no longer handle the FIA's promotional affairs, as well as reducing his other roles in the FIA.

FOA's free-to-air TV contracts will be limited to five years for host broadcasters (those from countries hosting a Grand Prix) and three years for others and will not be allowed to penalise broadcasters from showing other forms of open-wheeled racing.