EU gives all-clear to F1

Ecclestone helped reorganise F1 to satisfy the EC

The European Commission is to end its monitoring of how Formula One is run.

EC officials said F1 and motor sport's governing body were complying with European Union anti-trust rules.

The sport's governing body, the FIA, reached a deal with EU anti-trust officials in 2001 to end its commercial involvement in F1.

The EC said it would continue to monitor F1 for two years, but it announced on Friday the deal no longer needed to be scrutinised.

In a statement, the Commission pointed out modifications made in the deal now "ensure a pro-competitive environment for the development of automotive sport", and "have proven both efficient and balanced".

Under the 2001 deal, the FIA also agreed not to use its rules to impede the setting up of new motor sports competitions and strengthened procedures allowing for appeals against its decisions.

The Commission first started its investigation in 1999 after claiming the organisation of motor sport contravened EU competition guidelines.

It objected to the close links between the FIA and Formula One Administration, the company which markets the rights to F1 races, believing the FIA had the power to prevent competition by threatening to withdraw the licences of track owners, teams and drivers.

Monti's arrival at the EC made it easier to reach a compromise

Negotiations between the FIA and the EC were characterised by an often ill-tempered series of broadsides between the two bodies.

But the temperature cooled when Belgian Karel van Miert was replaced as competitions commissioner by Italian Mario Monti early in 2000.

FIA president Max Mosley made the breakthrough by offering to separate the FIA from direct financial benefits from the sale of F1's commercial rights.

The FIA leased these to Bernie Ecclestone's FOA company for 100 years after the current contract expires in 2011.

It was decided Ecclestone, an FIA vice-president as well as chief executive of FOA, would no longer handle FIA promotional matters and would also reduce his role in FIA affairs in other ways.

The changes made little practical difference to the way F1 is run - Mosley remained in charge of administration and legislation, and Ecclestone the commercial side.

But the two men did enough to satisfy the EC.

Other changes included FOA selling its interest in all forms of motor sport including rallying.

The FIA also amended its regulations to strengthen the rights of circuit owners and the Grand Prix teams and to make it clear that FIA would act "impartially".

And the FOA agreed to limit the duration of its free-to-air broadcasting contracts to five years for host broadcasters and three years in other cases.