F1 News: House Judiciary brings hammer down on Liberty Media (Update)

Andretti Global said in a statement: “We’re glad that the House Judiciary Committee has decided to investigate the practices of Liberty Media and FOM, as called for last week by a bipartisan group of lawmakers.”

Hot on the heels of Congress sending a letter to Liberty Media demanding answers by last Friday that we hear was not answered, Rep. Jim Jordan now has the House Judiciary Committee demanding a series of documents and communications from Formula 1’s president and its U.S.-based owner Liberty Media (who are very left leaning and well-connected to the democrat party) about the decision denying Andretti-Cadillac’s entry into F1.

In a letter Rep. Jim Jordan, R-Ohio, accuses the sport’s chiefs of engaging in “anticompetitive conduct” by rejecting the American racing team’s bid to enter F1 in 2025 or 2026.

The letter (see below) is dated Tuesday and addressed to Greg Maffei, the president and CEO of Liberty Media, and Stefano Domenicali, the president and CEO of Formula One Group.

“Delaying Andretti Cadillac’s entry into Formula One for even one year will harm American consumers to benefit failing Formula One teams,” Jordan writes. “Limiting the number of teams in Formula One will increase the price of sponsoring or buying into an existing Formula One team. As the Committee examines this matter and considers potential legislation around the structure and competition of sports leagues, we write to request a staff-level briefing on the decision to deny Andretti Cadillac’s application to join Formula One.”

Jordan demands documents and communications regarding the “process for evaluating the entry of new teams” into the sport, referring or relating to Andretti Global, as well as between or among Formula 1 Group, Liberty Media and the 10 existing teams about the entry of a new team. The letter asks for a copy of all communications between FOM, the FIA and the existing teams regarding the Andretti entry.  This would include all emails, between them, and could reveal incriminating communication. He gives them a May 21 deadline to respond.

The letter marks an escalating interest in Congress in the actions of F1, which has seen its popularity grow substantially in the United States in recent years. Andretti’s decision to partner with the Michigan-based GM to produce its engines adds to the domestic and economic stakes of a storied American team competing in the sport.

The letter comes days after Mario Andretti, a former Formula 1 world champion, visited Capitol Hill and spoke at a press conference with lawmakers to pressure the sport to admit Andretti Global.

“Chairman Jim Jordan met with Mario Andretti last week,” a source familiar with the meeting told NBC. “Chairman Jim Jordan is a big Formula 1 fan and watches Drive to Survive, like many Americans.”

Formula 1 and Liberty Media had no immediate comment. F1 denied Andretti’s bid in January, saying in a long statement that it did “not believe that the Applicant would be a competitive participant.”

The Ohio Republican claimed that the actions of F1 fall under the purview of the Judiciary Committee because sports leagues like it “operate in a notable area of antitrust law in which some degree of collusion is necessary for the creation of the product.”

“However, when a sports league deviates from its rules and practices in a manner that reduces competition and depresses consumer interest in the product, the collusion may amount to anticompetitive conduct,” Jordan writes (4 pages).