Liberty Media accused of monopolistic practices in Belgian MP’s inquiry – report

Belgian MEP Pascal Arimont has officially called on the European Commission to open an investigation into Liberty Media, citing possible monopolistic practices.

Arimont, a representative of the Christian Social Party of Belgium, has raised concerns about Liberty Media’s dominance in the motorsport sector – an area in which the company has extensive commercial rights and influence and top racing series such as Formula 1, Formula 2 and the Formula 3 covers.

These concerns, first reported by Belgian news source Het Belang van Limburg, follow Liberty Media’s agreement to acquire MotoGP organizer Dorna Sports.

Pascal Arimont has noted that Liberty Media’s significant market power poses a threat to fair competition, highlighting in particular the obstacles faced by new entrants. He stated, according to Het Belang van Limburg reports:

“Commercial agreements make it very difficult for new teams to enter Formula 1 and potentially restrict competition in an illegal way.”

This sentiment is due to the recent rejection of Andretti Global, which was refused entry despite FIA ​​approval. Liberty Media’s refusal to accommodate Andretti Global underscores Arimont’s concerns as it reflects the company’s past antitrust issues.

Liberty Media’s broad involvement in motorsports and its commercial arrangements have brought it under scrutiny. Beyond control of Formula 1 and its feeder series, Liberty Media has influence over Formula E through an affiliated company, Liberty Global.

The Andretti Global case further exacerbates this situation. Liberty Media’s rejection was not just independent, as several current Formula 1 teams supported the decision to prevent the creation of a new team that could potentially dilute revenues under the current distribution model. Furthermore, Formula 1 management’s justification was based on skepticism about Andretti’s ability to become competitive within a short period of time and questioned the added value of their presence in Formula 1.

In parallel with the European call for review, the US Department of Justice is conducting its investigation following Liberty Media’s action against Andretti Global. This investigation was sparked by concerns from six US senators, led by Amy Klobuchar and Mike Lee, who questioned whether Formula 1’s actions unfairly favored European companies over an American team and potentially violated US antitrust laws.

The U.S. House Judiciary Committee released the following letter at the time, as Newsweek Sports previously reported:

“Delaying Andretti Cadillac’s entry into Formula One for even one year will harm American consumers and benefit failing Formula One teams.”

“Limiting the number of teams in Formula 1 will increase the cost of sponsoring or purchasing an existing Formula 1 team. As the Committee considers this matter and considers possible legislation regarding the structure and competition of sports leagues, we write to request a staff briefing at the level of the decision to reject Andretti Cadillac’s application to join Formula 1.