Liberty Media says it is under antitrust investigation by the U.S. Department of Justice over its refusal to acquire Andretti Global.
Formula 1 bid.
Liberty Media told investors it had “received notice from the Department of Justice and the Antitrust Division that they have commenced an investigation into the conduct of Formula 1 in connection with Andretti Formula Racing’s application to participate in the FIA Formula One World Championship.”
Liberty Media President and CEO Greg Maffei addressed the investigation during the company’s quarterly earnings conference call earlier this week.
“We will fully cooperate with the investigation, including any requests for information,” Mapei said. “We believe that our decision and F1’s decision complied with all applicable U.S. antitrust laws, and we have detailed the basis for this decision in relation to Andretti in our previous statement.
“We are not opposed to the idea that any expansion is wrong. There is an expansion methodology that needs to be approved by the FIA and F1, and both parties need to meet the criteria and be found to have met them. And we are certainly open to the possibility that a new entrant could apply and be approved if they meet those requirements.”
A group of six senators led by Amy Klobuchar (D-MN) and Mike Lee (R-UT) requested the investigation in a letter sent in May to Assistant Attorney General for Antitrust Jonathan Cantor and Federal Trade Commission Chairwoman Lina Kahn. The senators’ actions followed a visit to Washington by Mario Andretti to lobby for congressional support for a response to Liberty’s decision to reject Andretti’s application.
Andretti, who applied to join the F1 grid early next year, had long-term plans to work with Cadillac, a move that would bring GM into the world championship as a new manufacturer. The FIA justified the decision by saying it did not believe Andretti could be competitive in such a short period of time and questioned the value his involvement would bring to the sport.
Reaction to Andretti’s plans has been mixed among existing teams, with some opposing the idea, citing the existing commercial agreement as a reason for creating an additional team, which would dilute the revenues of all other teams.
The next Concorde Agreement, which governs the commercial relationship between F1 and its teams, will run from 2026 to 2030.
