The NRL sent shockwaves through the rugby league community on Wednesday, announcing that any player who negotiates with the rebel rugby competition, R360, will be hit with a 10-year ban.

It was a major shock for all rugby league fans, considering Peter V'landys had essentially labelled the competition as a non-threat previously.

However, questions have been raised regarding the legality of the supposed bans.

According to the Competition and Consumer Act 2010, businesses cannot engage in behaviours that damage competition.

Therefore, by threatening severe sanctions to deter players from joining R360, the NRL could be in violation and face investigation from the Australian Competition and Consumer Commission (ACCC).

Although it is certainly a grey area, considering R360 is a rugby union competition, not rugby league, and won't have games in Australia.

Regardless, the Rugby League Players' Association's (RLPA) chief executive, Clint Newton, conceded that the matter will probably end up in court.

NRL Press Conference
NEWTON'S LAW: RLPA boss Clint Newton has been the only participant willing to speak to media regularly throughout the process. (Photo by Mark Metcalfe/Getty Images)

"No one wants to see players leaving the NRL or NRLW," Newton told the AAP.

"But the RLPA is uncertain about the legal basis or enforceability of the proposed bans.

"We are concerned this is destined to be tested and decided in an Australian courtroom."