Liberty Media faces antitrust investigation over Andretti's F1 entry denial

The United States Department of Justice has launched an antitrust probe into Formula 1 owner Liberty Media's rejection of Andretti Global's bid to join F1.

Liberty Media's CEO Greg Maffei confirmed the investigation during a quarterly earnings call, revealing that the company is now subject to scrutiny from the justice department's Antitrust Division.

The probe aims to examine the legality of F1's decision to refuse entry to Michael Andretti's team, despite the bid receiving technical approval from the FIA.

"We intend to fully cooperate with that investigation, including any related requests for information,"

Maffei stated.

"We believe our determination, F1's determination, was in compliance with all applicable US antitrust laws, and we've detailed the rationale for our decision, vis-a-vis Andretti in prior statements."

The Andretti bid: A contentious issue

Andretti Global, in partnership with General Motors' Cadillac brand, has been aggressively pursuing an F1 entry as an 11th team.

The American outfit has already established a base in Silverstone and embarked on a significant recruitment drive, including former F1 technical expert Pat Symonds.

However, despite clearing the FIA's technical hurdles, Andretti's bid has faced resistance from Formula 1 management and existing teams.

F1's stance has been that Andretti lacks the potential to become competitive in the medium term and would not provide sufficient commercial value to the series.

Existing teams have also expressed reluctance, citing concerns over dilution of the prize money pool with an additional entrant.

Political interest and escalation

The Department of Justice investigation marks a significant escalation in the Andretti entry saga, following earlier political interest in the matter.

In May, the chairman of the United States House Judiciary Committee initiated a probe into Liberty Media's denial of Andretti's F1 entry.

This political involvement came shortly after Mario Andretti, the team's patriarch, made an appearance on Capitol Hill.

The visit prompted Republican Jim Jordan to demand explanations from F1's owners regarding the decision-making process that has thwarted Andretti's ambitions.

Liberty media's stance on expansion

Despite the ongoing controversy, Maffei emphasized that Liberty Media and Formula 1 are not inherently opposed to grid expansion.

"We are certainly not against the idea that any expansion is wrong,"

he clarified.

"There is a methodology for expansion that requires approval of the FIA and the F1 and both groups have to find the criteria met."

The CEO reiterated the company's openness to new entrants, provided they meet the established requirements.

"We're certainly open to new entrants making applications and potentially being approved if those requirements are met,"

Maffei added.