Liberty Media confirms antitrust investigation by U.S. DOJ

Liberty Media says it is facing an antitrust investigation by the U.S. Department of Justice over its rejection of Andretti Global’s Formula 1 bid. Liberty Media told investors that it “has received notification from the Department of Justice, Antitrust Division that an investigation has been opened with respect to Formula 1’s conduct concerning the application by Andretti Formula Racing to enter the FIA Formula One World Championship.” Liberty Media President and CEO Greg Maffei addressed the investigation discussed during a quarterly earnings call earlier this week. “We intend to fully cooperate with that investigation, including any related request for information,” Maffei said. “We believe our determination or F1’s determination was in compliance with all applicable U.S. antitrust laws. And we’ve detailed the rationale for this decision vis-a-vis Andretti in prior statements. “We are certainly not against the idea that any expansion is wrong. There is a methodology for expansion that requires approval of the FIA and F1, and both groups have to meet and find the criteria met. And we’re certainly open to new entrants making applications and potentially being approved if those requirements are met.” A group of six senators led by Amy Klobuchar (D-MN) and Mike Lee (R-UT) requested the investigation in May in a letter addressed to Jonathan Kanter, the assistant attorney general for the Justice Department’s Antitrust Division, and Lina Khan, the chair of the Federal Trade Commission. The senators’ actions followed Mario Andretti visiting Washington to lobby congressional support for a congressional response to Liberty’s decision to reject Andretti’s application. Andretti, which applied to join the F1 grid as early as next year, with a longer-term plan to partner with Cadillac — a move that would bring GM into the world championship as a new manufacturer — was signed off by the FIA but blocked by Liberty, which controls the sport’s commercial side, in January. Liberty justified its decision by saying that it did not believe Andretti could become competitive within such a short timeframe, and questioned the value that its involvement would bring to the sport. The response to Andretti’s plans from existing teams was mixed, with several voicing opposition on the basis that under the current commercial agreement, an additional team would dilute everyone else’s income. The next Concorde Agreement, which governs F1’s commercial relationship with the teams, will run from 2026 to 2030.