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Liberty Media CEO Greg Maffei announced on Thursday’s earnings call that it is part of the Department of Justice’s investigation into Andretti and its prospective Formula One bid.
“This morning, we announced that there is a DOJ investigation. We intend to fully cooperate with that investigation, including any related requests for information,” Maffei said on the call. “We believe our determination or F1’s determination was in compliance with all applicable US anti-trust 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 the F1, and both groups have to find the criteria met,” he added. “We’re certainly open to new entrants making applications and potentially being approved if those requirements are met.”
The Athletic contacted the DOJ for confirmation, but the antitrust division declined to comment.
The probe comes after six U.S. senators penned a letter in May to Jonathan Kanter, the assistant attorney general for the DOJ’s antitrust division, and Lina Khan, the chair of the FTC. They called on the government entities to investigate Formula One Management’s decision to reject Andretti’s bid to join the grid in 2025 or 2026. In May, the group suggested in its letter that “it is possible that such a refusal to deal — especially if orchestrated through a group boycott could violate U.S. antitrust laws.” It’s worth noting that the 10 teams don’t have a vote in the matter but have expressed concerns.
The Athletic contacted the FTC and inquired whether it would conduct its own investigation. It also gave no comment.
Earlier in May, the House Judiciary Committee launched an investigation into the same topic, just days after Mario Andretti visited Capitol Hill and after 12 House members signed a letter to Maffei that raised “concerns with apparent anti-competitive actions that could prevent two American companies, Andretti Global and General Motors (GM), from producing and competing in Formula 1.” And none of those members are on the House Judiciary Committee.
The FIA approved Andretti’s bid last fall, and the governing body’s purview focuses on technical and sporting merits. The bid, then, fell with FOM, the commercial rights holder. It rejected Andretti’s bid for 2025 or 2026 but didn’t completely close the door on the possibility of joining in the future. It said it would “look differently on an application for the entry of a team into the 2028 championship.” This is when GM expects to build its first F1 engine.
FOM listed numerous reasons why it did not approve Andretti’s bid, including that “we do not believe that the Applicant would be a competitive participant” given that it’ll design two cars for two different sets of regulations (2025 and 2026) and rely on a customer engine. However, the company has continued pushing forward with its operations, including setting up a base at Silverstone in the UK and hiring staff (including key F1 tech figure Pat Symonds).
Top photo: Chris Graythen/Getty Images
