In a statement, the Commission said the new rules, agreed by soccer's European governing body UEFA last summer, fell outside EU competition law.
UEFA's amended rules allow national associations to block live football broadcasts during two and a half hours either on Saturday or Sunday to protect stadium attendances and the amateur game.
In a long-running dispute, commercial broadcasting companies had complained they were being restricted from showing matches for which they have paid increasingly large sums.
The EC said it had looked closely at the conflicting interests of soccer clubs which both wanted the extra TV revenue while making sure fans still came to live matches.
It said only ten of UEFA's 21 national football associations had actually blocked live broadcasting hours this season.
For example, no television channel in England shows live soccer during the key domestic fixture period on Saturday afternoons.
Similarly, the Belgian FA blocked live broadcasts during Saturday evenings when most first division games are played.
The EC concluded this did not constitute an appreciable restriction of competition under EU law.
It said that national fixtures were increasingly spread over several days of the week so broadcasters would rarely actually be blocked from showing some live games.
The EC said it had not yet found any reason to get involved with the emerging market for internet streaming of football but reserved the right to do so if the broadcasting rules hindered the development of new internet services.
"The present decision reflects the Commission's respect of the specific characteristics of sport and of its cultural and social function in Europe in trying to play the role of an impartial referee between the different interests of broadcasters and football clubs," Competition Commissioner Mario Monti said.
A spokeswoman said the live broadcast ban would remain in effect even for games that were sold out in advance.
She also said the new rules would permit people with satellite dishes to receive games broadcast in other countries.
For example, a viewer in England might be able to watch a live local game in Italy on an Italian TV station via satellite, even though local broadcast was delayed.
Reuters
The European Union's executive Commission has cleared new UEFA broadcasting rules allowing national soccer associations to block televised live soccer matches during key weekend fixture periods.
