Home / Poker News April 2009 / EU finds US in breach of WTO rules
EU finds US in breach of WTO rules
Posted by: James Carter. - Wed, 2009-04-01 09:23
The EU Commission has reached a conclusion at the end of a 12-month study regarding the moves that the US has made towards blocking EU-based online gambling and online poker companies from accessing the US market. The investigation commenced in March of 2008, when the Commission received a report regarding the fact that US was on the attack against European based online gambling and poker companies while allowing US based companies to freely operate both online and offline. The complaint addressed to the EU Commission pointed it out that there was a clear case of discrimination present against European companies.
Following the 2006 UIGEA, European companies have suffered serious setbacks as it became illegal for them to accept US players. The restrictions the above mentioned legislation has placed on financial institutions regarding the acceptance of any funds from US citizens meant to finance online gambling and poker activities at Europe-based companies have grown to constitute a serious barrier for EU economic interest and a restriction of access to the resources offered by the US market.
The Commission’s study eventually concluded that the US measures meant to keep EU companies out of the US market were indeed in violation of World Trade Organization rules for international trade.
With that in mind, the EU could theoretically file a formal complaint at the WTO in much the same way that Antigua and Barbuda had done in the past, but EU officials have stressed that despite the obvious nature of the damages caused by the UIGEA, the EU is likely to choose to reach a negotiated solution with the US administration.
EU officials have also noted that it was up to the US to regulate online poker and gambling in its market, but that this regulation had to come in correlation with the country’s obligations assumed through the WTO treaties.
In the wake of the EU’s decision, Barney Frank , the Financial Committee Chairman of the House of representatives has once again announced his intention to have the UIGEA overturned as soon as possible.
The US Trade Representative’s Office has signaled its intention to review the EU’s report too, and announced its willingness to discuss the issue with EU officials.
