Liberty Media hit with anti-trust probe over Andretti F1 block
Formula 1 owner Liberty Media is facing a potential legal showdown with the US Department of Justice after...
The post Liberty Media hit with anti-trust probe over Andretti F1 block appeared first on F1i.com.
Formula 1 owner Liberty Media is facing a potential legal showdown with the US Department of Justice after confirming an antitrust investigation into its decision to reject Andretti Global's bid to join Grand Prix racing’s ranks.
The antitrust probe was confirmed on Thursday by Liberty Media CEO Greg Maffei during the company’s quarterly earnings conference call with Wall Street analysts.
Andretti Global, backed by General Motors' Cadillac brand, has been aggressively pursuing an F1 entry, establishing a base in Silverstone and hiring key personnel, including former F1 technical director Pat Symonds.
While the FIA, motorsport's governing body, approved Andretti's bid on a technical level, F1 itself has steadfastly opposed the American team's entry, citing concerns over its potential competitiveness and commercial value.
The existing F1 teams have also been resistant to expanding the grid as it would dilute the sport’s all-important prize money pool.
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“Looking at Andretti, as you saw this morning, we announced that there is a DoJ investigation,” commented Maffei on the call.
“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.”
Liberty Media CEO Greg Maffei on the grid with F1 boss Stefano Domenicali.
Despite the investigation, Maffei maintained an open stance towards potential future expansion.
“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 find the criteria met.
“We're certainly open to new entrants making applications and potentially being approved if those requirements are met.”
The Department of Justice's involvement follows increased political pressure on Liberty Media.
In May, the chairman of the United States House Judiciary Committee launched an inquiry into the Andretti rejection after team patriarch Mario Andretti visited Capitol Hill.
Republican Congressman Jim Jordan subsequently demanded explanations from F1's owners for the decision-making process that blocked Andretti's aspirations.
With the antitrust probe now underway, the future of Andretti's F1 ambitions, as well as the broader landscape of the sport, is shrouded in uncertainty.
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The post Liberty Media hit with anti-trust probe over Andretti F1 block appeared first on F1i.com.