The U.S. Department of Justice has opened an antitrust investigation into Liberty Media, the American company that owns the commercial rights to Formula 1, over its refusal to admit the U.S. racing team Andretti Global into the sport.
That’s according to Liberty Media, which notified investors about the inquiry in an official form.
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Liberty Media said in the form that it “has received notification from the Department of Justice, Antitrust Division that an investigation has been opened with respect to Formula 1’s conduct concerning the application by Andretti Formula Racing to enter the FIA Formula One World Championship.”
Liberty Media President and CEO Greg Maffei also discussed it on an earnings call Thursday morning.
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“We intend to fully cooperate with that investigation, including any related request for information. We believe our determination or F1’s determination was in compliance with all applicable U.S. antitrust laws,” Maffei said on the call.
“And we’ve detailed the rationale for this decision vis-a-vis Andretti in prior statements. We are certainly not against the idea that any expansion is wrong,” he said. “There is a methodology for expansion that requires approval of the FIA and the F1 and both groups have to meet find the criteria met. And we’re certainly open to new entrants making applications and potentially being approved if those requirements are met.”
The Justice Department declined to comment.
The investigation was requested in May by a group of senators, led by Amy Klobuchar, D-Minn., who said they were “concerned” that Formula 1 may be violating U.S. antitrust law by helping the largely European rival teams, “including foreign automakers,” to block competition from Andretti Global, which has teamed up with the Michigan-based GM and Cadillac to build its power unit.
The backstory: Late last year F1’s governing body, the FIA, approved Andretti’s application to join the sport, saying it met the “stringent criteria” required of a new team. But F1’s commercial side, owned by Liberty Media, blocked it in January, saying it didn’t believe the team would be competitive or boost the value of the F1 championship in 2025 or 2026.
Andretti Global declined to comment.
The team’s bid to enter F1 is helmed by Michael Andretti. His father, Mario Andretti, the patriarch of the racing dynasty, has been outspoken in his criticism of the decision, even accusing Liberty Media of making it personal, a charge the company denies.
F1’s growing fanbase, and the potential for an American automaker to compete in the popular sport, has sparked interest from members of Congress in recent months. The six senators told the Justice Department in May that they “have serious concerns that the rejection of Team Andretti-Cadillac was based on a desire to exclude a rival from the racetrack, marketing opportunities, and prestige that competing in F1 can lend to a car manufacturer competing to sell cars across the globe.”
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