Andretti's F1 rejection sparks US Congress investigation

The rejection of Andretti Global's proposed Formula 1 team entry has caught the attention of the United States Congress.

House Judiciary Committee Chairman Jim Jordan (R-OH) has initiated a formal probe into the decision-making process behind F1's dismissal of the Andretti-Cadillac bid as reported by NBC.

Anticompetitive Conduct

In a letter to Liberty Media CEO Greg Maffei and F1 CEO Stefano Domenicali, Jordan outlined concerns that F1's denial of Andretti may have constituted illegal anticompetitive conduct.

He questioned the validity of reasons provided, stating the

"excuses appear to be pretextual, arbitrary, and unrelated to Andretti Cadillac's suitability to compete."

Jordan directly challenged F1's claims that a new team must aim for podiums, noting most current teams fail to regularly achieve that standard.

He also pointed out contradictions in F1's arguments against Andretti partnering with an existing manufacturer versus developing a new power unit.

Protecting Incumbent Teams

A key allegation is whether F1 improperly hindered competition to insulate its current teams. As Jordan stated,

"If Formula 1 must hinder competition and harm consumers to protect failing competitors, then the entire Formula 1 model may be broken."

He argued delaying Andretti's entry, even by one year, would "harm American consumers to benefit failing Formula 1 teams."

This hints at suspicions over the incumbent teams' roles in the decision.

Investigative Demands

To examine the decision fully, Jordan has demanded F1 provide all relevant documents and communications related to:

• The new team entry evaluation process
• Deliberations around Andretti's specific bid
• Interactions with current F1 teams on new entries
• Anti-dilution fee provisions in the Concorde Agreement

He has also requested a staff briefing from F1 by May 21st.

Rising Political Interest

Jordan's probe follows recent letters to F1 from other Congress members questioning if the Andretti rejection violated U.S. antitrust laws by "unreasonably restraining market competition."

With mounting political pressure, F1 faces escalating government scrutiny over its governance and team selection processes amidst allegations it shielded incumbent teams from new competition.