In Suspense: Belgian Competition Authority Imposes Interim Measures on Cycling standard

In this blog post for A&O Shearman, authors Eliana Paredis & Joris Gruyter analyze the Belgian Competition Authority’s decision to suspend a new technical standard introduced by the International Cycling Union (UCI). The UCI had adopted a rule limiting the maximum gear ratio allowed in professional road cycling, which placed SRAM — one of the two leading manufacturers of road bike transmission systems — at a disadvantage because its current products did not comply. Facing imminent competitive harm as teams using its equipment risked being unable to compete effectively, SRAM requested interim measures shortly before a major competition in China.

The BCA granted SRAM’s request and ordered the immediate suspension of the gear-ratio limit, along with a ban on any direct or indirect measures that would restrict certain transmission systems in UCI-regulated events. It also required UCI to publicly announce that the standard was not applicable. These interim measures will remain in effect until the UCI implements a new safety standard through a transparent, objective, and nondiscriminatory process, or until a final decision on the merits is issued, with potential fines for non-compliance and ongoing monitoring by the BCA.

The authors describe the BCA’s reasoning, noting that the authority viewed the UCI’s rule as having been adopted without adequate stakeholder consultation, lacking transparent justification, and appearing discriminatory toward SRAM. Given the low evidentiary threshold for establishing a prima facie antitrust infringement, the BCA found it plausible that the standard violated Belgian and EU competition rules. It also determined that the risk of reputational damage, commercial loss, operational disruption, and long-term competitive harm to SRAM created an urgent need for intervention to avoid damage that would be serious, immediate, and difficult to remedy…

CONTINUE READING…