Liberty Media is now facing an antitrust investigation from the U.S. Department of Justice for denying Andretti Global entry into the Formula 1 World Championship. Liberty Media announced that it "received notification from the Department of Justice’s Antitrust Division that an investigation has been launched regarding Formula 1’s actions related to Andretti Formula Racing’s application to join the FIA Formula One World Championship." Liberty Media President and CEO Greg Maffei stated that they informed investors about the investigation in an official filing. The company intends to fully cooperate with the investigation. They also commented that they are not opposed to the idea of expansion, a claim that the Justice Department has not acknowledged.

The investigation was initiated in May by a group of seven senators led by Amy Klobuchar, who expressed concerns that Formula 1 might be violating U.S. antitrust laws. They believe F1 is primarily supporting European teams, including foreign automakers, to block competition from Andretti Global, which has partnered with Michigan-based GM and Cadillac to develop the power unit.

To fully understand this, we need to look back to late last year when F1’s governing body, the FIA, approved Andretti’s application to join the sport, stating that it met the stringent criteria required for a new team. However, in January 2024, F1’s commercial side, owned by Liberty Media, rejected the entry, citing doubts about the team’s competitiveness and potential to enhance the value of the F1 championship in 2025 or 2026. Andretti Global declined to comment on the situation.

Michael Andretti, the son of a racing legend Mario Andretti, has been vocal in criticizing the company´s decision. Mario even accused Liberty Media of making the issue personal and was deeply offended by the language used in denying the bid to join F1. With F1’s growing fanbase and the potential for an American automaker to join the sport, it’s no surprise that members of Congress have taken a keen interest in the situation. In May of this year, six senators urged the Justice Department to investigate, stating that the rejection of Team Andretti-Cadillac was driven by a desire to exclude a competitor from the racetrack, marketing opportunities, and the prestige associated with competing in F1, which could benefit a car manufacturer looking to sell globally.

For now, we will have to wait for the investigation to unfold. However, this isn’t the first time Liberty Media has influenced F1 management. They recently weighed in on the Sergio Pérez situation, when Red Bull discused Pérez furute in the team, expressing concern about the Mexican Grand Prix without Pérez in Red Bull, This raises questions about Liberty Media and its influence in the world of Formula 1.

This year, they also announced an agreement to acquire MotoGP, which is expected to be completed by the end of the year.

About Liberty Media

Liberty Media operates in a broad range of media, communications, and entertainment businesses, and it also holds interests in these areas. These businesses are divided into three tracking stock groups. The first group is the Liberty SiriusXM Group (NASDAQ: LSXMA, LSXMB, LSXMK), which includes Liberty Media’s interest in SiriusXM. The second group is the Formula One Group (NASDAQ: FWONA, FWONK), which includes Liberty Media’s subsidiaries, Formula 1 and Quint, along with other smaller investments. The third group is the Liberty Live Group (NASDAQ: LLYVA, LLYVK), which includes Liberty Media’s stake in Live Nation and other smaller investments.