The transfer rules of Fifa, the governing body of world football, clash with European Union laws, according to a ruling by the EU's highest court on Friday. The decision was made in a high-profile case involving former France player Lassana Diarra, who cited the bloc's free movement principles.

"The rules in question hinder the free movement of professional footballers who wish to further their careers by joining a new club," stated the Luxembourg-based Court of Justice of the European Union (CJEU).

Fifa's regulations on the status and transfer of players (RSTP) stipulate that a player who ends a contract before its term "without just cause" must pay compensation to the club. Additionally, if the player joins a new club, both the player and the new club are jointly liable for the compensation payment.

Diarra challenged Fifa's rules after a dispute with a club dating back a decade. In 2013, he signed a four-year contract with Lokomotiv Moscow, which was terminated a year later due to Diarra's dissatisfaction with alleged pay cuts. The former Arsenal, Chelsea, and Real Madrid player claimed that these rules made it difficult for him to find a new club, as any new team would be jointly responsible with him for compensating Lokomotiv.

Diarra's case was supported by the global players' union, FifPro, and was reviewed by Fifa's judicial bodies. More details are expected to follow.