The US Department of Justice has begun an official investigation into Liberty Media’s decision to reject Andretti Global’s Formula 1 bid.
Liberty Media, the owner of Formula 1, is currently under scrutiny by the US Department of Justice’s Antitrust Division. This investigation comes after the company rejected a bid from Andretti Global, led by Michael Andretti, to join the F1 ranks. CEO Greg Maffei revealed the probe during a quarterly earnings call, stating that the company plans to fully cooperate with the authorities.
Andretti Global, in partnership with a well-known American automaker, has been eager to join Formula 1 as an 11th team. Despite the FIA accepting their bid on technical grounds, Formula 1 has remained unconvinced about the team’s potential to be competitive in the medium term. This skepticism has led to the decision to bar Andretti from entering the championship.
The resistance from F1 teams also stems from the financial implications of adding another competitor, which would mean sharing the prize pool with an additional entrant. Liberty Media’s leadership remains confident that their actions comply with US antitrust laws. Maffei emphasized that they have previously detailed the rationale behind their decision regarding Andretti and maintain that it was lawful.
“Looking at Andretti, as you saw this morning, we announced that there is a DoJ investigation,” Maffei said. “We intend to fully cooperate with that investigation, including any related requests for information. We believe our determination, F1’s determination, was in compliance with all applicable US antitrust laws, and we’ve detailed the rationale for our decision, vis-a-vis Andretti in prior statements.”
Maffei also reiterated that Liberty Media and Formula 1 are not entirely opposed to the idea of expansion. He noted that any new team’s entry requires approval from both the FIA and F1, and the criteria for such approval must be thoroughly met. “We’re certainly open to new entrants making applications and potentially being approved if those requirements are met,” Maffei added.
Political interest in the matter has escalated, with the chairman of the United States House Judiciary Committee opening a probe into Liberty Media’s decision earlier this year. This political scrutiny intensified after Mario Andretti’s appearance on Capitol Hill, prompting Republican Jim Jordan to seek explanations about the decision-making process that blocked Andretti Global’s entry into Formula 1.
As the investigation progresses, Liberty Media’s actions and their compliance with antitrust laws will be closely examined. The outcome of this probe could have significant implications for the future of potential new entrants in Formula 1.
