The secretary general of the Swedish Football Association, Sune Hellströmer, has written a letter to the municipality's governing board stating that Borås didn't fulfill “it's contractual obligations”.
As a result, the association has the right to request compensation from the city for the additional costs associated with moving the matches to Halmstad, which lies about two hours south.
The dispute stems from demands by Eufa that a franchise of the Swedish fast food chain Max close its doors during next summer's tournament.
The restaurant, which has a contract with the city of Borås, sits in the arena where the football games were to played.
Uefa wanted the restaurant shuttered because, according to its rules, only official sponsors are allowed to be seen in the arena during tournament play.
McDonald's, one of Max's primary competitors in Sweden, is a major Uefa sponsor.