F1 owner Liberty Media faces antitrust probe over Andretti rejection

Liberty Media has announced that the US Department of Justice is launching an investigation into the company over its rejection of Andretti Global’s bid for Formula 1.

CEO Greg Maffei confirmed during a quarterly earnings conference that the company that owns Formula 1 is officially under investigation by the Justice Department’s Antitrust Division, which is investigating whether Formula 1’s banning of Michael Andretti’s team was legal.

Andretti, along with General Motors marque Cadillac, has long sought to become the 11th team to enter Formula 1. A base has been set up at Silverstone and large-scale recruitment drives are underway, including former Formula 1 driver Pat Symonds.

The FIA ​​​​has accepted Andretti Global’s bid on a technical level, but Formula 1 itself has closed the door to the American powerhouse. The FIA ​​​​believed that Andretti would not be able to become competitive in the medium term and therefore would not add enough commercial value to the series.

Formula 1 teams were also reluctant to accept Andretti, as they would have to share their prize money with an additional entrant.

Greg Maffei, CEO, Liberty Media Corporation

Photo by: Zak Mauger / Motorsport Images

Maffei said Liberty Media would cooperate with the Justice Department and was confident Formula 1 had not violated any US regulations.

“Looking at Andretti, as you saw this morning, we announced that there is an investigation underway by the Department of Justice,” Maffei told Wall Street analysts on Thursday.

“We intend to cooperate fully with that investigation, including any related requests for information.

“We believe that our decision, F1’s decision, was consistent with all applicable U.S. antitrust laws, and we have set out the reasoning for our decision, with respect to Andretti, in previous statements.”

Maffei stressed that F1 and Liberty Media do not rule out accepting an expansion team if it meets all the requirements.

“We are certainly not against the idea that any expansion is wrong,” he said. “There is a methodology for expansion that requires approval from the FIA ​​and F1 and both groups have to feel that the criteria are met.

Michael Andretti, Owner, Andretti Global

Photo by: Alexander Trienitz

“We are certainly open to new participants applying and potentially being approved if the requirements are met.”

In May, the chairman of the United States House of Representatives Judiciary Committee opened an investigation into Liberty Media’s refusal to allow Andretti to enter Formula 1, leading to increased political interest.

It came just days after team boss Mario Andretti appeared on Capitol Hill, prompting Republican Jim Jordan to write a letter to Formula 1’s owners demanding an explanation of the decision-making process that blocked Andretti’s hopes.