F1 owner placed under investigation by European Union
Liberty Media is facing an investigation by the European Union over its bid to buy MotoGP.
JUST IN: F1 owner placed under investigation by European Union
The European Union has placed the owner of F1, Liberty Media, under investigation over its proposed acquisition of MotoGP.
It was announced earlier this year that Liberty would seek to acquire Dorna Sports, which has the exclusive commercial rights to MotoGP – with Liberty seeking to bring it and F1 under the same ownership umbrella.
However, concerns were raised by the EU that doing so could lead to higher prices for broadcasting rights and restrict free competition between interested parties when commercial deals were renegotiated.
The EU Commission – the executive arm of the EU – believed in preliminary investigations that “serious competition concerns” were possible in “narrow national markets” within the European Economic Area (EEA) where F1 and MotoGP are the two dominant motorsport categories.
An in-depth investigation will now be launched into the takeover to confirm the Commission’s initial findings, with a further investigation set to be carried out into Liberty’s largest shareholder John Malone to determine whether he could “exert decisive influence over both companies.”
The possibility of Liberty foreclosing rival broadcasters in Belgium, Ireland and the Netherlands will also be considered.
A decision must be taken by the Commission within 90 working days – May 14th, 2025, having been notified of the transaction on November 14th.
Why the EU is investigating
The EU Commission is investigating whether the potential merger breaks anti-competition laws, with successful completion of the deal thus bringing F1 and MotoGP under the same ownership.
A so-called Phase II merger investigation has been launched, with it currently being the sole investigation of that type being executed.
Teresa Ribera, the Executive Vice-President for Clean, Just and Competitive Transition, explained why the investigation had been launched.
“By acquiring Dorna Sports, Liberty Media would hold the commercial rights to two of the most popular motorsports in Europe: Formula 1 and MotoGP,” she said.
“We need to more carefully assess whether this acquisition could negatively affect European broadcasters, for example in terms of increased license fees, and ultimately European consumers and motorsports fans through higher prices.
“We will at the same time openly consider any substantiated claims by the parties about possible benefits this acquisition might bring, for fans, the industry and for consumers.”
