Competition scrutiny of labour markets: the ECJ clarifies that context is key in the assessment of the Liga Portuguesa no-poach case

In April 2022, the Portuguese Competition Authority (“PCA”) fined 31 sports clubs and the Portuguese Professional Football League (“LPFP”), for having entered into an agreement that prevented clubs in the Primeira Liga and Segunda Liga from signing footballers who had unilaterally terminated their employment contracts on grounds related to the COVID-19 pandemic, deeming it a by object competition infringement. In the context of the judicial appeal of this decision, in December 2023, the Portuguese Competition Court (“TCRS”) issued a preliminary ruling request, questioning the ECJ on the concept of restriction by object. The ECJ has now provided further clarification on how to apply the “by object” concept to this case, which must now be applied by the TCRS.

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