Liberty Media, following the resignation announced yesterday by CEO Greg Maffei, can breathe a sigh of relief, at least temporarily.
While awaiting the ruling from the U.S. Department of Justice, which has also requested explanations regarding the rejection Andretti faced earlier this year for entry into Formula 1 in 2026, the European Commission has cleared the U.S. consortium in the parallel investigation opened in recent weeks.
Liberty Smiles
Pascal Arimont, a Belgian Member of the European Parliament from the Christian Social Party, had called on the Commission to open a second investigation for potential monopoly formation and consequent violation of competition laws.
A few days later, Christine Anderson, a German MEP from the far-right “Alternative for Germany” party, called for further EU intervention on the Andretti matter.
“The fact that the Formula One Group (FOG) rejected Andretti’s entry into Formula 1, despite the team having FIA approval, could indicate a fundamental conflict of interest,” Anderson remarked.
“The existing teams may be forming a cartel that systematically excludes new competitors to protect their revenues and market values. This practice could significantly distort competition in the European motorsport industry.”
“The case of the Williams team illustrates the issue, as financial difficulties during the COVID-19 crisis necessitated the sale of the long-standing company, with the Williams family having to relinquish all their shares.”
“The high team valuations, resulting from market exclusion, make it virtually impossible for innovative private entrepreneurs like Eddie Jordan or Ross Brawn to enter Formula 1 or take over existing teams.”
The European Commission’s Verdict
A few hours ago, Margrethe Vestager, the European Commissioner for Competition since 2014, issued the definitive verdict on the matter: “Based on the limited information available to the Commission regarding the alleged barriers to entry into Formula 1 for new teams, the Commission cannot assess whether these barriers result from anti-competitive behavior in violation of Article 101 and/or Article 102 of the Treaty on the Functioning of the EU.”
“Therefore, the Commission does not currently intend to consider any measures or investigate the impact of the alleged barriers on innovation, employment, and competitiveness in the automotive and motorsport sectors within the EU. However, we remain ready to examine any evidence of anti-competitive conduct that stakeholders may bring to our attention.”
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