EU Probe Sought Into Liberty Media’s Motorsport Monopoly Amid F1 and MotoGP Acquisition Concerns

Lawmaker demands probe into Liberty Media due to concerns over monopolistic control

Owners of F1 anticipate approval from the EU competition authority regarding the acquisition of MotoGP

A member of the European Parliament from Belgium has requested that the European Commission conduct an inquiry into Liberty Media due to concerns about its monopolistic control over global motorsport, being the proprietor of both Formula 1 and MotoGP.

In April, Liberty revealed its acquisition of an 86% majority stake in Dorna Sports and MotoGP, finalizing a transaction valued at $4.2 billion.

Liberty remains optimistic about concluding the sale before the year's end, pending approval from the EU's antitrust committee, with the American firm assured of its success.

Pascal Arimont, a Member of the European Parliament from Belgium and a member of the Christian Social Party, has penned a letter to the European Union requesting an investigation into the potential for Liberty to establish a monopoly following its takeover of MotoGP.

In 2017, Liberty acquired F1 from CVC Capital, and its affiliate, Liberty Global, holds ownership of the Formula E World Championship.

Liberty Media, which owns Formula 2 and Formula 3, has expanded its portfolio by purchasing Dorna Sports. This acquisition grants them oversight of all entities managed by the Spanish firm, including the prominent World Superbikes series.

According to Het Belang van Limburg, Arimont emphasizes the need for equitable competition for consumer protection and raises concerns about whether Liberty adheres to this principle.

The EU's competition authority mandated that CVC divest its stakes in MotoGP as a condition for approving its acquisition of F1.

As a consequence, Bridgepoint became the new owner of MotoGP.

During a financial briefing earlier in the year, Liberty's chief executive, Greg Maffei, highlighted that CVC's inability to acquire ownership of both F1 and MotoGP was primarily due to the constrained period available to secure the four-wheel racing series before facing regulatory hurdles.

"In April, he mentioned that during his conversation with the CVC management, they were pressed for time to finalize the acquisition of F1."

"Thus, they were unable to allocate time to navigate the regulatory procedures."

"They were a private equity company that experienced significant profits from one investment and were in the process of acquiring another when they had an agreement to fulfill. Our situation is quite distinct."

Liberty has come under examination by the US Department of Justice for potential antitrust issues, following F1's decision to deny Andretti Global access to the racing lineup.

Belgian Member of the European Parliament Arimont highlighted in his statement, noting: "The structure of business deals in place significantly challenges the entry of new participants into Formula 1, potentially limiting competition in a manner that could be deemed unlawful."

Margrethe Vestager, the European Commissioner for Competition, will address Arimont's calls for a new investigation into Liberty Media by the European Parliament within a six-week timeframe.

Teres Ribera from Spain is set to take over her position in December.

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