F1 Rumor: Belgian MP Submits Request For Liberty Media Investigation In Monopoly Accusations

Belgian MP Pascal Arimont has reportedly called for an EU investigation into Liberty Media's dominance in motorsport, alleging potential monopolistic practices that may violate competition laws.

May 4, 2024; Miami Gardens, Florida, USA; Red Bull Racing driver Max Verstappen (1) leads the start of the F1 Sprint Race at Miami International Autodrome. Mandatory Credit: Peter Casey-Imagn Images / Peter Casey-Imagn Images

Belgian Member of the European Parliament, Pascal Arimont, has reportedly called upon the European Commission to launch an investigation into Liberty Media's extensive governance of motorsport entities.

Representing Belgium's Christian Social Party, Arimont's request reveals potential monopolistic practices by Liberty Media, which could be contravening competition laws. This move, initially reported by Belgian news source "Het Belang van Limburg," shows there are concerns about the growing dominance of Liberty Media in the motorsport industry and its implications for healthy competition.

Liberty Media, a significant player in sports and entertainment, currently holds the commercial rights to Formula 1, Formula 2, Formula 3, and finds influence within Formula E through its associated entity, Liberty Global. On top of this, Liberty Media also entered into an agreement to acquire Dorna Sports, the MotoGP promoter, thereby expanding its control into the realm of two-wheeled motorsport. This development has raised alarms regarding potential antitrust issues, drawing parallels to similar concerns raised in the past.

Pascal Arimont, who has a background in law and politics, articulates concerns about Liberty Media's dominance in the industry as well as the recent refusal of Andretti Global to join F1 as an eleventh team. The American team was initially approved by the FIA in October 2023 but faced a rejection from Formula One Management in January 2024. In an official statement, Arimont expressed his worries, stating:

"Commercial agreements make it very difficult for new teams to enter F1, possibly restricting competition in an illegal way."

The potential monopolistic practices being scrutinized stem from the European Union's strict antitrust laws, which prohibit actions that significantly stifle competition. These laws are intended to prevent entities from abusing a dominant market position. Arimont's request, aimed at prompting an EU inquiry, is poised to investigate whether Liberty Media's sprawling consolidations violate these competition regulations. These concerns are not only echoed in Europe; in a simultaneous move, the U.S. Department of Justice is also examining Liberty Media's practices, especially in light of Andretti Global's failed entry.

Historically, the EU's enforcement of antitrust laws has had substantial impacts on the sports industry. In 2006, a precedent was set when EU antitrust statutes were employed to block CVC Capital Partners' attempt to merge Formula 1 with MotoGP. This action compelled CVC to relinquish their rights to MotoGP to facilitate other acquisitions, reinforcing the EU's commitment to maintaining competition. Such historical interventions underscore the seriousness with which the EU views potential monopolistic practices in sports.