CJEU - C‑209/23 - RRC Sports

Facts — Fédération internationale de football association (FIFA) is a Switzerland-based non-profit that acts as the global governing body for football. A large number of football clubs and national football associations are member of FIFA and bound by its regulations. In January FIFA published the FIFA Football Agent Regulations (FFAR). FFAR regulated the conduct of player’s agents. In particular, FFAR provided maximum limits to agents’ remuneration and prohibited specific types of contractual arrangements between clubs, agents, and agencies. In order to ensure compliance with these rules, Article 12 FFAR required agents to disclose certain information to FIFA. In particular, agents had to disclose: Information about any agreement with a client, other than a representation agreement; Information on any arrangement between agents to cooperate in the provision of their services, or to share the revenue or profits of their services; Information about their relationship with agencies, including the names of all of the agency’s employees.

Additionally, FIFA would make the information available to a number of stakeholders including agents, players, and football clubs. Three applicants (an agent, a company acting as a players’ agent, and the Vice-President of a players’ agents’ associations) challenged FFAR in the Regional Court of Mainz (Germany). The Court referred four questions to the CJEU for a preliminary ruling. In essence, the Court asked the CJEU whether the FFAR was compatible with Articles 101 TFEU (prohibition on cartels), 102 TFEU (prohibition on abuse of a dominant position), 56 TFEU (freedom to provide services), and 6 GDPR (legal bases for processing personal data). With regards to Article 6 GDPR specifically, the referring court essentially asked whether there was a lawful basis under the GDPR for a collection of personal data, such as required under the FFAR’s mandatory disclosure rules. Advocate General Opinion — The referring question did not specify what legal basis had to be examined in order to assess the compatibility of FFAR disclosures with the GDPR.

However, the AG opined that interest under Article 6(1)(f) was the relevant legal basis, based on the nature of the FFAR rules and on other information on the order for reference. Therefore, the AG focused on the legal basis of legitimate interest exclusively. The AG recalled that the mandatory disclosure under FFAR were compatible with the GDPR if they met three cumulative requirements: They genuinely pursued an interest worthy of protection; They were limited to what was strictly necessary to that end; They did not place an intolerable burden on the data subjects as regards their right to privacy and their financial interests. The AG opined that in the case at hand, the processing of personal data pursued an interest worthy of protection (that is, FIFA’s interest in ensuring that the conduct of agents was consistent with the core objective of the football transfer systems, and other objectives related to the good functioning of the player market).

However, the AG was more cautious about the other two requirements. With regards to the requirement of necessity, the AG noted that FFAR required the collection of a substantial amount of personal data, including delicate data about agents’ remuneration and contractual agreements. Additionally, FIFA would not only receive the data but also make it available to stakeholders such as clubs, players, and player’s agents. The AG opined that such a broad collection and disclosure of personal data could, to some extent, exceed what was strictly necessary to pursue FIFA’s legitimate interest. In that regard, the AG stressed that FIFA should explain to the referring court why the collection and disclosure of the data were necessary, in relation to each type of information. With regards to the balancing of interests, the AG opined that agents operate within a regulatory framework and, therefore, have a reasonable expectation that FIFA would process their data as a regulatory body.

In the AG’s view, this expectation could weight favorably on the balancing of legitimate interest. At the same time, the AG opined that the availability of agents’ personal data to both competitors and potential clients, could financially harm agents and erode trust in agent-client relationships. Holding — The CJEU held that processing based on Article 6(1)(f) GDPR is lawful only where three cumulative conditions are met. First, the controller or a third party must pursue a legitimate interest. Second, the processing must be necessary for that interest. Third, the interests or fundamental rights and freedoms of the data subject must not override the legitimate interest pursued. Regarding the information agents were required to submit through the controller’s digital platform under Article 16 FFAR, the Court considered that ensuring compliance with the regulatory framework governing football agents could constitute a legitimate interest.

This was conditional on the underlying obligations being compatible with EU and national law. The Court found that the information required under Article 16 FFAR appeared capable of identifying attempts to circumvent rules on representation, remuneration and conflicts of interest. The processing could therefore be adequate, relevant and limited to what was necessary. However, the referring court had to determine whether equally effective but less intrusive measures were available and assess any additional information requested through the platform whose precise scope was not defined in the regulations. The processing under Article 16 FFAR could therefore be compatible with Article 6(1)(f) GDPR, subject to verification by the referring court. Regarding Article 19 FFAR, the Court distinguished between the different categories of information disclosed by the controller. The publication of agents’ names and contact details, the identity of their clients, the duration and exclusivity of representation agreements and the services provided could pursue legitimate interests such as establishing professional and ethical standards, protecting clients from unethical conduct and improving transparency.

Since the information concerned professional activities within a regulatory framework known to the persons involved, this processing could satisfy the balancing test under Article 6(1)(f) GDPR. By contrast, publishing detailed information about every transaction involving an agent, including the service fees paid, was not limited sufficiently. The Court held that agents and clients did not need access to detailed information about all transactions involving their competitors to comply with the regulations. The indiscriminate disclosure of this information therefore infringed the data minimisation principle under Article 5(1)(c) GDPR and was not necessary under Article 6(1)(f) GDPR. The Court also examined the publication of sanctions imposed on agents and clients. It accepted that publication could, in certain circumstances, deter misconduct, restore confidence in the market and allow persons harmed by an infringement to become aware of it.

Nevertheless, Article 19 FFAR required the publication of every sanction without considering its seriousness, the harm caused, its relevance to market confidence or the time elapsed since the infringement. The regulation also did not provide for the information to cease being available after a defined period. The blanket publication obligation therefore did not appropriately balance the controller’s interests against the data subjects’ rights under Articles 7 and 8 CFR. Moreover, where a sanction contained personal data relating to criminal convictions or offences, Article 10 GDPR applied. In the absence of authorisation under EU or Member State law and supervision by a public authority, the controller could not process such data. The Court consequently held that Article 6(1)(f) GDPR precluded regulations adopted by an international sports federation insofar as they required the disclosure and publication of: every sanction imposed on agents or their clients; and detailed information concerning all transactions involving agents.

The Court did not impose a fine or order any specific corrective measure. It provided an interpretation of EU law for the referring court, which remained responsible for resolving the underlying dispute and verifying the relevant factual and legal conditions. Holding — The CJEU held that processing based on Article 6(1)(f) GDPR is lawful only where three cumulative conditions are met. First, the controller or a third party must pursue a legitimate interest. Second, the processing must be necessary for that interest. Third, the interests or fundamental rights and freedoms of the data subject must not override the legitimate interest pursued. Regarding the information agents were required to submit through the controller’s digital platform under Article 16 FFAR, the Court considered that ensuring compliance with the regulatory framework governing football agents could constitute a legitimate interest.

This was conditional on the underlying obligations being compatible with EU and national law. The Court found that the information required under Article 16 FFAR appeared capable of identifying attempts to circumvent rules on representation, remuneration and conflicts of interest. The processing could therefore be adequate, relevant and limited to what was necessary. However, the referring court had to determine whether equally effective but less intrusive measures were available and assess any additional information requested through the platform whose precise scope was not defined in the regulations. The processing under Article 16 FFAR could therefore be compatible with Article 6(1)(f) GDPR, subject to verification by the referring court. Regarding Article 19 FFAR, the Court distinguished between the different categories of information disclosed by the controller. The publication of agents’ names and contact details, the identity of their clients, the duration and exclusivity of representation agreements and the services provided could pursue legitimate interests such as establishing professional and ethical standards, protecting clients from unethical conduct and improving transparency.

Since the information concerned professional activities within a regulatory framework known to the persons involved, this processing could satisfy the balancing test under Article 6(1)(f) GDPR. By contrast, publishing detailed information about every transaction involving an agent, including the service fees paid, was not limited sufficiently. The Court held that agents and clients did not need access to detailed information about all transactions involving their competitors to comply with the regulations. The indiscriminate disclosure of this information therefore infringed the data minimisation principle under Article 5(1)(c) GDPR and was not necessary under Article 6(1)(f) GDPR. The Court also examined the publication of sanctions imposed on agents and clients. It accepted that publication could, in certain circumstances, deter misconduct, restore confidence in the market and allow persons harmed by an infringement to become aware of it.

Nevertheless, Article 19 FFAR required the publication of every sanction without considering its seriousness, the harm caused, its relevance to market confidence or the time elapsed since the infringement. The regulation also did not provide for the information to cease being available after a defined period. The blanket publication obligation therefore did not appropriately balance the controller’s interests against the data subjects’ rights under Articles 7 and 8 CFR. Moreover, where a sanction contained personal data relating to criminal convictions or offences, Article 10 GDPR applied. In the absence of authorisation under EU or Member State law and supervision by a public authority, the controller could not process such data. The Court consequently held that Article 6(1)(f) GDPR precluded regulations adopted by an international sports federation insofar as they required the disclosure and publication of: every sanction imposed on agents or their clients; and detailed information concerning all transactions involving agents.

The Court did not impose a fine or order any specific corrective measure. It provided an interpretation of EU law for the referring court, which remained responsible for resolving the underlying dispute and verifying the relevant factual and legal conditions. Comment — The case is largely about competition law and the freedom to provide services. Only the fourth question involves the protection of personal data. With regards to the fourth question and to the assessment of legitimate interest, both the AG's Opinion and the Judgement seems to closely follow the "three-step test" even though the AG does not directly refer to the CJEU's case law in listing the requirements of the test.