EU ANTITRUST: HOT TOPICS & NEXT STEPS

EU ANTITRUST: HOT TOPICS & NEXT STEPS 2022

Prague, Czechia

undertakes advertising and marketing activities (benefits) or other activities supporting the economic activity of the sponsor. It is an agreement the boundaries of which are most often determined by the principles of social coexistence and by the agreed resolutions of the parties. However, it should be remembered that public authorities must comply with the relevant provisions of the acts on public finances and therefore do not enjoy the full freedom that is characteristic of typical civil law relations. In particular, they are related to the provisions on public procurement – for example in Poland it is the Act of 11 September 2019 – Public Procurement Law, and in Germany it is Verordnung über die Vergabe öffentlicher Aufträge (Regulation on Public Procurement Participation). Agreements concluded by public authorities with sports clubs most often concern the implementation of specific promotional services. When concluding them, it is argued that sports clubs are often the best economic entity that can provide advertising during sports events that enjoy significant audience interest. This allows for the circumvention of stringent public procurement requirements. 3.3.2 Support by subscription of shares or stocks in sports clubs The method of financing by subscribing for shares may differ depending on the particular legal order. Due to its nature, it can only be applied to entities that are able to create shares or issue shares. However, an appropriate legal basis is necessary for such activities. An example is the Polish Act on the Municipal Economy of December 20, 1996. Pursuant to its provisions, local government units (i.e., one of the public authorities) may establish limited liability companies or joint-stock companies, and may join such companies, and selected restrictions indicated in in this act. In this case, we are dealing with a kind of liberalization of the requirements that are imposed on public authorities. Usually, the economic activity of public authorities is effectively limited by the relevant provisions of public law. 3.3.3 Support based on a loan agreement A loan agreement can be defined as a document between a borrower and lender that details a loan repayment schedule. In other words, by the loan agreement, the lender undertakes to transfer a certain amount of money or items marked only as to the species into the property of the taking-owner, and the taking party undertakes to return the same amount of money or the same number of things of the same species and quality (Zinbarg, 1975). The remuneration of the competent public authority for granting the loan can be determined in any way. It generally takes the form of an interest expressed in money. It also happens, however, that a public authority resigns from its remuneration for using the capital.

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