F1 News: Andretti turns screws even tighter in push for F1 entry

Liberty Media in an earnings call today acknowledged the Department of Justice is investigating the company over antitrust violations for refusing Andretti Global’s entry into F1.

Liberty says it is not against expansion and will cooperate fully with the DOJ.

CEO Greg Maffei confirmed in a quarterly earnings call that the company that owns Formula 1 is officially being probed by the justice department’s Antitrus

While the FIA accepted Andretti Global’s bid on a technical level, F1 itself has kept the door shut on the American powerhouse because it didn’t feel Andretti could become competitive in the medium term, and therefore wouldn’t provide enough commercial value to the series.

This, of course, is a total joke given the performance of some of the back marker F1 teams.

Maffei said Liberty Media would co-operate with the Department of Justice and was confident F1 hasn’t breached any US regulations.

“Looking at Andretti, as you saw this morning, we announced that there is a DoJ investigation,” Maffei told Wall Street business analysts on Thursday.

“We intend to fully cooperate with that investigation, including any related requests for information.

“We believe our determination, F1’s determination, was in compliance with all applicable US antitrust laws, and we’ve detailed the rationale for our decision, vis-a-vis Andretti in prior statements.”

Maffei reiterated that F1 and Liberty Media aren’t ruling out accepting an expansion team if it ticks all the boxes.

“We are certainly not against the idea that any expansion is wrong,” he said. “There is a methodology for expansion that requires approval of the FIA and the F1 and both groups have to find the criteria met.

“We’re certainly open to new entrants making applications and potentially being approved if those requirements are met.”

May 22, 2024

(GMM) Andretti is accelerating its push for a place in the Formula 1 paddock.. With congress already instigating an investigation into F1’s snub of the hopeful new team, another official probe by the Department of Justice may soon be underway.

Another bipartisan group of politicians – this time senators – have written a letter asking the Biden administration to look into whether F1’s decision violates antitrust laws.

The letter said they have “substantial concerns” that Formula 1 stakeholders may have “colluded to exclude Andretti-Cadillac to insulate themselves from competition on the track and in the European car market”.

And on the very same day, Andretti announced that it has secured the services of well-known F1 engineer Pat Symonds, who will now take ‘gardening leave’ from his existing position as chief technical officer of Liberty Media-owned F1.

“Pat’s keen understanding of aerodynamics, vehicle dynamics and Formula 1 power units will be instrumental as we continue to build a competitive team,” Michael Andretti said.

“I believe his expertise has been pivotal in shaping the narrative of Formula 1 and his vote of confidence in joining our effort speaks volumes.”

Already at Andretti as technical director is Nick Chester, who knows Symonds well from their highly-successful time together in F1 at Renault.

Symonds, 70, will serve as ‘executive engineering consultant’.

Department of Justice Urged to Hammer Liberty Media and FOM

A bipartisan group of seven senators on Tuesday urged the Justice Department and Federal Trade Commission to look into accusations that Andretti Global may have been excluded from the Formula One Championship series in a possible American antitrust violation.

In a letter to Jonathan Kanter, the Justice Department’s assistant attorney general for the the Antitrust Division, and FTC Chair Lina Khan, the senators called for them to investigate excluding Andretti Formula Racing, known as Team Andretti-Cadillac, from entering Europe’s Formula One Championship series.

“We write because we are concerned that Formula One is acting at the behest of its independent teams and other ‘key stakeholders,’ including foreign automakers, to exclude the team formed by Andretti Formula Racing, LLC’s partnership with General Motors (“Team Andretti-Cadillac”) from entering the Formula One Championship series,” read a letter released by Sen. Amy Klobuchar, D-Minn., chair of the Senate’s Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights.

Joining Klobuchar were the subcommittee’s ranking member, Sen. Mike Lee, R-Utah, and Sens. Gary Peters, D-Mich., Todd Young, R-Ind., Debbie Stabenow, D-Mich., Alex Padilla, D-Calif., and Mike Braun, R-Ind.

The two Democratic senators from Michigan notably represent the home state of General Motors while their two Indiana Republican colleagues represent Andretti’s headquarters.

“It is possible that such a refusal to deal — especially if orchestrated through a group boycott — could violate U.S. antitrust laws,” their joint letter reads.

A spokesperson for both the Justice Department and FTC confirmed Tuesday they received the letter, but declined to comment further, according to NBC News.

Young, Indiana’s Republican senator, said on X that his home state’s Andretti team “deserves a fair shot to compete in F1.”

Team Andretti-Cadillac, an Indiana-based racing team backed by General Motors trying to break into a European-dominated sports competition, “was refused entry into Formula One by its commercial arm, which had the task to negotiate terms of entry after approval by the FIA,” according to a joint news release, despite Andretti having met all requirements to join F1 in rules set forth by the Fédération Internationale de l’Automobile.

Formula One rejected Andretti’s January bid to joint grid in the next two years, but left open the possibility of a 2028 entry, questioning if Andretti would “add value” to the competition’s prestige.

“Formula 1 profits off of American viewership, fans, & venues,” Sen. Alex Padilla, D-Calif., posted on X Tuesday afternoon.

Yet, F1, “won’t let an American team, driving an American car, compete at their events,” he added.

The senators contend that F1’s actions raise “substantial concerns” that Formula One’s 10 current teams and sponsors “may have colluded to exclude Andretti-Cadillac to insulate themselves from competition on the track and in the European car market.”

“It looks a lot like European companies are trying to illegally block American competition on the racetrack and in the car market,” Klobuchar posted on social media.

“That is why we are calling for an investigation,” she said.

“Given these facts,” the senators wrote, “we have serious concerns that the rejection of Team Andretti-Cadillac was based on a desire to exclude a rival from the racetrack, marketing opportunities, and prestige that competing in F1 can lend to a car manufacturer competing to sell cars across the globe.”