F1 News
F1 owner guilty? Justice Department in US opens antitrust investigation
- Corwin Kunst
The rejection of Andretti-Cadillac will have another chapter for Liberty Media, owner of Formula 1. The US government's 'Antitrust Division' has indicated that it is under investigation. The group acknowledges that they are under a magnifying glass and that certain matters need to be clarified.
Last year, the FIA gave potential new teams the opportunity to apply for the top class of motorsport. Of all the entries, only Andretti-Cadillac's plan proved sufficiently well-founded, according to the governing body, to actually enter Formula 1 from 2026. From the FIA, all signals were green, but Liberty Media, as owner, has the final say.
And that is where things went wrong. The American group did not see much point in an eleventh team. The reason given was that Andretti-Cadillac would not be competitive enough, but that is disputed by team owner Michael Andretti. In fact, it is - an open secret - different. With an eleventh team, Formula 1 could become worth less because it is less exclusive. Moreover, the current racing teams were not immediately in favour either. They feared receiving less prize money because in that case the cake would have to be shared by 11 instead of 10 pieces.
Liberty CEO gives statement
CEO Greg Maffei has since informed shareholders of the investigation. "We intend to fully cooperate with that investigation, including any related request for information. We believe our determination or F1’s determination was in compliance with all applicable U.S. antitrust laws,” Maffei said on the call," he said during a telephone interview with multiple media outlets.
"And we’ve detailed the rationale for this decision vis-a-vis Andretti in prior statements. We are certainly not against the idea that any expansion is wrong. There is a methodology for expansion that requires approval of the FIA and the F1 and both groups have to meet find the criteria met. And we’re certainly open to new entrants making applications and potentially being approved if those requirements are met."
So a line went through Andretti-Cadillac's entry, although they themselves have not yet resigned themselves to that. They are still working very hard despite the adamant 'no' at the factory to eventually appear on the grid.
This article has been written in collaboration with Ben Stevens.