Liberty Media, the commercial rights holder of Formula 1, finds itself in the spotlight once again—this time accused of monopolistic behavior by Belgian MEP Pascal Arimont. Arimont has called on the European Commission to investigate Liberty Media’s business practices, alleging their control over the sport limits competition by preventing new teams from entering the circuit.
Since Liberty Media took control of Formula 1 in 2017, the sport has seen a surge in global popularity, with the value of teams soaring from a few hundred million dollars to more than a billion in some cases. While this growth has benefited existing teams and stakeholders, it has unintentionally created significant barriers for new entrants, who are often blocked from joining the competition by a mix of business deals and resistance from current teams.
Arimont pointed out that the restrictive nature of these agreements could limit competition in violation of EU trade laws, saying: “Trade agreements make it very difficult for new teams to enter, perhaps by illegally limiting competition. »
This comes following recent controversies, including Formula One Management’s rejection of new manufacturers’ offers earlier this year. The circuit’s lack of openness to expansion has fueled allegations that the sport operates in a closed and monopolistic manner, with the 10 existing teams having little incentive to allow new competition.
The European Commission could intervene
If the European Commission responds to Arimont’s call for an investigation, it could lead to a significant change in the way Formula 1 operates. A ruling in favor of the MEP’s claims could force Liberty Media and FOM to adjust their policies , potentially paving the way for new teams to enter the sport. However, convincing the current 10 teams, many of whom oppose grid expansion, will be a major challenge.
Liberty Media’s MotoGP deal still in progress
In the meantime, Liberty Media has been busy on other fronts. Earlier this year, the American conglomerate announced a deal to acquire MotoGP from Dorna Sports, but the transaction is mired in regulatory approvals and international legal complexities. Despite the delays, Liberty Media president Greg Maffei reassured stakeholders that the deal is still on track to close by the end of 2024.
Maffei explained: “Regulatory filings are progressing as planned. We have received foreign investment control approval in the two necessary jurisdictions, Italy and Spain, and we recently obtained merger approval in Brazil and Australia. We continue to expect the transaction to close by the end of the year. »
The F1 battle continues
As Liberty Media navigates through these challenges, the Formula 1 season continues. Next race is the United States Grand Prix in Austin, where Lewis Hamilton will look to close the gap to Max Verstappen in the battle for the championship. With just six races remaining in the 2024 season, tensions are high as both drivers battle for victory—Verstappen looking to extend his reign as world champion and Hamilton striving for his record eighth title.
The next few months will be crucial, not only for the battle on the track but also for developments off the track that could redefine the future of the sport.
