A change to Estonia's Penal Code ended criminal proceedings against Meistriliiga football club FC Flora in an alleged possible cartel case, after entering into such agreements was downgraded from a crime to a misdemeanor. The Competition Authority, however, says the case exposed wider issues — and that sports clubs should urgently review their contracts and general terms.

The investigation began when the Authority looked into a proposed "good-will agreement" allegedly offered to rival team Nõmme United, by Estonian Football Association president Aivar Pohlak on behalf of FC Flora. The proposal stated that "children of any age may not change clubs without the consent of their previous club," and the same applied to employees, including coaches. FC Flora director Pelle Pohlak said the offer was made by Pohlak in his role as mediator and that Flora "had not concluded such written agreements with other clubs."

"When in July the long-delayed and much-debated European Union competition directive, known as the ECN directive, came into force in Estonia, it also affected the criminal case," said Competition Authority director Evelin Pärn-Lee. "With the 2025 amendment to the Penal Code, entering into cartel agreements has no longer been criminalized. From that point on, such conduct falls under misdemeanor procedure."

According to Pärn-Lee, "the Competition Authority had nothing else to do but look at the facts. The circumstances clearly indicated that at best this was only an attempt to enter into an agreement... And in misdemeanor proceedings, an attempt to conclude an agreement is not punishable."

Although the case was terminated, Pärn-Lee said the authority went further. "Officials of the Competition Authority looked into the matter, and as a result we addressed football clubs and other market participants," she said. "We sent out dozens, possibly even hundreds of notices to clubs, explaining what is allowed and what is not."

She stressed that "restrictions or prohibitions on poaching or recruiting coaches and players… constitute an activity prohibited by law," urging: "I can openly call on all club owners and managers to review their contracts and general terms."

Pärn-Lee added that with only about 14 people working on competition supervision in Estonia, the authority's capacity remains "extremely scant."

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