Veron Begins Legal Battle with UCI over Commission's Antitrust Violations

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Veron Begins Legal Battle with UCI over Commission's Antitrust Violations

Veron, a business group representing 11 WorldTour teams including Deceuninck-QuickStep, Team Ineos, and Jumbo-Visma, filed an antitrust complaint with the European Commission against the UCI (International Cycling Union).

In a statement, Veron alleged that the UCI is attempting to control on-bike rider data by hindering the development of the Hammer Race Series and changing its rules.

"The UCI today is not only the regulator of the sport, but should deprive its stakeholders of the creation of new business without their consent; the UCI feels entitled to use its regulatory authority for its own commercial gain, taking away the rights of teams and riders without consultation or permission ." the Veron statement reads.

"Over the past year, the UCI has tried to stop Veron and the teams from pioneering new races (team versus team "hammer series") and joint business ventures on technology. Veron and its shareholder and partner, the teams, hoped and expected that their efforts would be supported by the UCI.

"However, over the past 12 months, the UCI has used its regulatory power and political influence to try to stop Veron and the team from doing business in an inaccurate and illegal manner.

"As a result, Veron and its team are left with no other option but to file a complaint with the European Commission for the purpose of obtaining an evaluation by an external body as to whether UCI's conduct in the above matter (in particular its exercise of regulatory power and political influence) violates EU competition rules.

Cycling News expects that it will take several months for the European Commission to decide whether to hear the case and several years for a final verdict.

UCI told Cycling News that it has not yet been notified of the allegations, but once it is, it will take the necessary action according to the appropriate procedures.

The antitrust complaint to the European Commission escalates the eternal power struggle between the Véron team, the UCI, and the major race organizers.

The Veron team and many other teams believe that pro cycling's existing business model is unstable and hinders the sport's development.

During the recent World Championships in Yorkshire, the AIGCP (the association of men's professional road cycling teams) expressed opposition to the UCI's planned "classic series." Currently, the major one-day classics will likely remain part of the current World Tour calendar, along with special rankings, prize money, and promotion by teams and riders.

Velon was founded in 2014 as major teams became increasingly frustrated with the business model of pro cycling. Eleven of the current 18 WorldTour teams are represented in Velon: Beulah Hansgrohe, CCC Team, Deceuninck-Quick Step, EF Education First, Lotto Soudal, Mitchelton Scott, Team Ineos, Team Jumbo Visma, Team Sunweb, Trek Segafredo, UAE Team Emirates.

ASO, the organizer of the Tour de France, dominates the sport. Meanwhile, various UCI presidents have tried to introduce various reforms, but little has changed. Véron's business revolves around the use of data and video content on the bikes, but the UCI and race organizers have often fought over ownership of the data.

Veron has decided to create the Hammer Series and organize its own races, but team-based events have struggled to gain momentum. Four Hammer events have been announced for 2020, but according to Cycling News, the Hammer race scheduled for February 2020 in Colombia will not take place after the Colombian Cycling Federation opposed the event citing scheduling conflicts.

Due to ongoing protests in Hong Kong, a final decision on holding a one-day race for this year's Hammer Series in Hong Kong will be made later this week.

UCI President David Lapartient later praised the work of the Colombian Federation and promised to participate in the Colombia 2.1 race in February 2020.

Veron claims that pro cycling teams invest more than 400 million euros annually in the sport, which is more than 50% of the total investment in professional road cycling, but is almost entirely dependent on sponsorship revenue. Véron claims to support and participate in many races on the UCI calendar, but criticizes the lack of a clear narrative and a solid business model.

"Almost everyone in the sport, including the UCI, agrees that fundamental changes are needed to make this model more stable and to attract new investment in teams and races," a Véron statement released by CEO Graham Bartlett reads. The strategy was not to fight to reallocate existing funds, but to generate new revenue from new business through innovation and increased fan engagement"

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"Our desire is a stable, predictable and fair regulatory environment for the sport, where teams, riders and race organizers are treated equally. Véron, its shareholders and partners want to develop new ideas, attract new investments and build better business models so that professional road cycling continues to strengthen and develop for fans and all those involved in the sport.

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