The European Union's authority has officially launched an in-depth investigation to determine whether Formula 1 owner Liberty Media's acquisition of MotoGP violates EU antitrust regulations.

The European Commission is delaying Liberty's planned purchase of Dorna, the company that holds the rights to the MotoGP World Championship.

Announced in May, the deal involves Liberty Media acquiring an 86% stake in Dorna, valuing the Spanish company at €4.2 billion. However, the transaction faces further delays due to the European Commission's intervention. Following a Bloomberg report last week, the regulator confirmed on Thursday that it would open an in-depth investigation to determine whether the acquisition violates EU competition laws. This investigation is led by Teresa Ribera, a vice president of both the Commission and the Spanish government.

The central concern is whether MotoGP's acquisition could give Liberty excessive control over MotoGP rights, potentially leading to higher prices for consumers. "The transaction raises significant competition concerns in narrowly defined national markets for licensing broadcasting rights for motorsports content across the European Economic Area. Formula One is the dominant market player in all European countries, with MotoGP often being its sole competitor," stated the Commission in its initial assessment.

Additionally, the Commission noted that the deal might reduce competition in broader markets for licensing broadcasting rights for sports content. "Formula One and MotoGP appear to compete closely, and this transaction could eliminate key competitive constraints between them," it explained.

The investigation will also examine the role of John Malone, the principal shareholder of Liberty Media and Liberty Global, to determine whether his influence could marginalize competing broadcasters in countries where Liberty operates, including Belgium, Ireland, and the Netherlands.

This next phase of the investigation could take up to 90 working days, setting a new deadline for the decision.

Under the terms of the agreement, Liberty Media must pay €126 million to Dorna if it withdraws its offer.