Formula 1 News: Liberty Media gets hit with a 3rd monopoly charge

(GMM) The boss of Formula E wants the European Commission to look into Liberty Media’s acquisition of the MotoGP series.

Alejandro Agag told the Financial Times that because Liberty already owns Formula 1, the deal would give the US-based entity “very significant” power.

Liberty Media CEO Greg Maffei openly admits that the MotoGP depends on regulatory approval.

“From the point of view of competition law, I think there are significant challenges,” Agag said.

“The leverage that this merger will give the resulting entity in terms of negotiating with broadcasters will be significant, and I think the European Commission will look very carefully at this deal.”

Agag says he’s not calling for the Commission to scupper the deal, but he wants “proper remedies to guarantee fairness in the market”.

Interestingly, the Liberty Media-linked Liberty Global company took a controlling stake in the Agag-founded Formula E earlier this year.

Liberty Global would not comment on Agag’s comments, while a spokesman for Formula E said: “As a former politician, Alejandro has a strong personal interest in antitrust issues and was expressing his own views.

“We generally don’t comment on prospective deals.”

October 13, 2024

Liberty Media has been hit with its 3rd concurrent monopoly investigation – First it was its Ticketmaster Business, then the USA government began its investigation as to why Andretti Global’s F1 application was denied, and now Belgium has formally requested the European Commission initiate an investigation into Liberty Media, citing potential monopolistic practices of the company.

Liberty Media CEO Greg Maffei now has to battle antitrust investigations on three fronts with possibly more to come — Liberty Media CEO Greg Maffei now has to battle antitrust investigations on three fronts, with possibly more to come

Pascal Arimont, a representative of Belgium’s Christian Social Party and a Parliment Member, has raised concerns over Liberty Media’s dominance in the motorsport sector—a domain where it holds comprehensive commercial rights and influence, covering premier racing series such as Formula 1, Formula 2, and Formula 3.

These concerns, first reported by Belgian news source “Het Belang van Limburg,” come on the heels of the company’s agreement to acquire Dorna Sports, the promoter of MotoGP.

Pascal Arimont has noted the company’s significant market power as a threat to fair competition, particularly noting the barriers faced by new entrants. He explained, as per the reports from Het Belang van Limburg:

“Commercial agreements make it very difficult for new teams to enter F1, possibly restricting competition in an illegal way.”

This sentiment stems from the recent rejection of Andretti Global which was denied entry despite receiving approval from the FIA. The refusal by Liberty Media to accommodate Andretti Global underlines Arimont’s concerns as it mirrors past antitrust issues involving the company.

Liberty Media’s broad holdings in motorsport and its commercial agreements have brought them under scrutiny. Beyond their grip on Formula 1 and its feeder series, Liberty Media holds sway in Formula E through an associated entity, Liberty Global.