Andretti F1 plight sparks high-level European demand

A second member of the European Parliament (MEP) has come forward seeking answers regarding the dismissal of Andretti's bid to join the F1 grid in 2026.

Belgian MEP Pascal Arimont previously filed a written request with the European Commission about Liberty Media's activities, seeking clarification on the proposed takeover of MotoGP and also questioning whether competition is being illegally restricted in F1. 

Arimont was also referring to Andretti's entry into Formula 1 in 2026 - which was denied by Liberty Media, F1's commercial rights holder. Now a second MEP has come forward to the European Commission about the state of affairs regarding Andretti's bid.

Christine Anderson, MEP for the AFD (from Germany) has submitted an official application to the European Commission on Oct. 16, 2024. It reads;

The fact that the Formula One Group (FOG) rejected Andretti’s entry into Formula 1, despite the team having FIA approval, could indicate a fundamental conflict of interest. Existing teams may be forming a de facto cartel that systematically excludes new competitors to protect their revenues and market values. This practice could significantly distort competition in the European motor sport industry.

The case of the Williams team illustrates the issue, as financial difficulties during the COVID-19 crisis meant that the long-established company had to be sold, with the Williams family having to give up all its shares. The high team values resulting from market foreclosure make it practically impossible for innovative private entrepreneurs such as Eddie Jordan or Ross Brawn to enter into Formula 1 or take over existing teams.

This situation has direct implications on the internal market, as many Formula 1 teams are based in the EU.

1. Given this problematic set-up, what is the Commission’s assessment of the cartel-like structures in Formula 1, which hinder the entry of new teams and lead to a concentration of team owners among large investors?

2. What measures is the Commission considering to ensure a fairer and more transparent process for the entry of new teams into Formula 1 and a wide range of team owners?

3. Is the Commission planning to investigate the impact of these entry barriers and the resulting market concentration on innovation, jobs and the competitiveness of the motor sport and automotive sector in the EU?

The European Commission normally has six weeks to deliberate on the application and thus decide whether or not an investigation should follow.

In the United States, the Department of Justice continues to move forward with its investigation into F1 and Liberty Media. 

The Americans want to investigate whether F1 is not a closed cartel, where other parties can't enter. They will also investigate whether F1 is allowed to charge an entrance fee when a possible 11th team joins.