Belgian Member of the European Parliament Pascal Arimont has formally requested the European Commission to initiate an investigation into Liberty Media, citing potential monopolistic practices.
Arimont, a representative of Belgium’s Christian Social Party, has raised concerns over Liberty Media’s dominance in the motorsport sector—a domain where it holds comprehensive commercial rights and influence, covering premier racing series such as Formula 1, Formula 2, and Formula 3.
These concerns, first reported by Belgian news source “Het Belang van Limburg,” come on the heels of Liberty Media’s agreement to acquire Dorna Sports, the promoter of MotoGP.
Pascal Arimont has noted Liberty Media’s significant market power as a threat to fair competition, particularly noting the barriers faced by new entrants. He explained, as per the reports from Het Belang van Limburg:
“Commercial agreements make it very difficult for new teams to enter F1, possibly restricting competition in an illegal way.”
This sentiment stems from the recent rejection of Andretti Global which was denied entry despite receiving approval from the FIA. The refusal by Liberty Media to accommodate Andretti Global underlines Arimont’s concerns as it mirrors past antitrust issues involving the company.
Liberty Media’s broad holdings in motorsport and its commercial agreements have brought them under scrutiny. Beyond their grip on Formula 1 and its feeder series, Liberty Media holds sway in Formula E through an associated entity, Liberty Global.
The Andretti Global case adds a layer to this situation. Liberty Media’s rejection was not solely independent, with several current Formula 1 teams supporting the decision to prevent a new team that could potentially dilute income under the present distribution model. Moreover, Formula One Management’s rationale leaned on skepticism over Andretti’s ability to become competitive within a short timeframe, questioning the added value of their presence in F1.
Parallel to the European call for scrutiny, the U.S. Department of Justice is conducting its investigation following actions by Liberty Media against Andretti Global. This inquiry was spurred by concerns voiced by six U.S. senators, led by Amy Klobuchar and Mike Lee, questioning whether Formula 1’s actions unfairly favored European entities over an American team, potentially violating U.S. antitrust statutes.
The U.S. House Judiciary Committee released the below letter at the time, as previously reported by Newsweek Sports:
“Delaying Andretti Cadillac’s entry into Formula One for even one year will harm American consumers to benefit failing Formula One teams.
“Limiting the number of teams in Formula One will increase the price of sponsoring or buying into an existing Formula One team. As the Committee examines this matter and considers potential legislation around the structure and competition of sports leagues, we write to request a staff-level briefing on the decision to deny Andretti Cadillac’s application to join Formula One.”
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