European Commission Closes Infringement Procedure

The European Commission has closed the infringement procedure initiated against France in relation to its legislation prohibiting limited companies operating in the field of sport from raising capital from the public.

While acknowledging that protection of savers and the promotion of a certain degree of equality in sports competitions are relevant objectives of general interest, the Commission considered that a total ban on raising capital from the public was disproportionate and therefore incompatible with the rules of the EC Treaty on the free movement of capital.

The decision to close the case has been taken following a satisfactory amendment made to the French legislation Article 68 of that Act No 2006-1770 removes the prohibition on limited companies operating in the field of sport from raising capital from the public.

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