Normally, if a trade association introduced rules that raised barriers to entry and entrenched dominant players, antitrust regulators would be up in arms. Yet UEFA—the Union of European Football Associations—seems to enjoy the support, even the encouragement, of the European Commission on new rules that will do just that.

The Financial Fair Play (FFP) rules, which come into force in the 2013-14 season, prevent football clubs from spending more than what they earn each year. Clubs that do not comply with this "break-even"...