THE European Commission said yesterday that the European soccer body UEFA has six weeks to end its transfer fee system and nationality restrictions or face fines.

The Commission said in a statement that both practices, which were declared illegal in the so called Bosman ruling of the European Court of Justice, violated European Union law barring agreements that restrict competition.

It said it might also investigate relations between European clubs and the rest of the world and national transfer systems.

This could send bigger shock waves through the soccer world since the December 15th Bosman ruling addressed only the question of dealings between clubs in different EU countries.

The judgment was based on an EU treaty article guaranteeing workers the right to move freely within the Union. The Commission's warning comes under separate rules giving it the authority to investigate cartel like activity.

The Commission said it had told UEFA and world soccer body FIFA in a letter that it would open formal legal proceedings against them and lift their immunity from fines if they did not give a satisfactory response within six weeks.