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US House Judiciary opens Andretti probe

NEWS STORY
10/05/2024

Jim Jordan, the chairman of the United States House Judiciary Committee has written to Liberty Media demanding documents relating to the refusal to allow Andretti to enter F1.

The letter, which follows that of last week, when 12 members of Congress wrote to Liberty President, Greg Maffei expressing fears that antitrust laws have been violated, has been sent to Maffei and F1 CEO, Stefano Domenicali.

"The Committee on the Judiciary is responsible for examining the sufficiency of federal competition laws to protect against monopolies and other unfair restraints on trade," states the letter, a copy of which was sent to US broadcaster NBC by Republican Jordan.

"Sports leagues, like Formula 1, operate in a notable area of antitrust law in which some degree of collusion is necessary for the creation of the product," it continues.

"However, when a sports league deviates from its rules and practices in a manner that reduces competition and depresses consumer interest in the product, the collusion may amount to anti-competitive conduct."

Jordan says he is not satisfied with the reasons given by F1 for its refusal to accept Andretti into the sport before 2028, Formula One Management (FOM) having claimed that the team "would not provide value to the championship" and "would not be a "competitive participant". Indeed, he points out that there are currently a number of teams on the grid unable to compete for wins.

"The excuses put forward for denying Andretti Cadillac's entry appear to be pretextual, arbitrary, and unrelated to Andretti Cadillac's suitability to compete in Formula 1," he writes. "For example, Formula 1 alleged that a new team could only add value to Formula 1 by 'competing for podiums and race wins'. However, the FIA had already analysed - and approved of - the technical capabilities of Andretti Cadillac to compete among current teams, and most current teams in Formula 1 do not meet Formula 1's standard of regularly competing for 'podiums and race wins'.

"Formula 1 also faulted Andretti Cadillac for attempting to use an existing engine manufacturer because it could 'be damaging to the prestige and standing of' Formula 1. At the same time, however, Formula 1 stated that if Andretti Cadillac used a new engine manufactured by General Motors in the team's first year, a new engine would create a challenge for the new team.

"Formula 1 cannot have it both ways. The truth, as FIA President Mohamed Ben Sulayem explained, is that the rejection of Andretti Cadillac is 'all about money'."

"Weak teams want to be protected from competition to the detriment of consumers and an additional team would compete for prize money and sponsorships.

"If Formula 1 must hinder competition and harm consumers to protect failing competitors, then the entire Formula 1 model may be broken and the entity cannot hide behind the necessity of a sports league to pursue anti-competitive conduct.

"Delaying Andretti Cadillac's entry into Formula 1 for even one year will harm American consumers to benefit failing Formula 1 teams."

In addition to requesting data and documents relating to F1's review of Andretti's bid, Jordan, a two-time NCAA national champion wrestler and former college wrestling coach, is demanding all communications between F1 and the existing teams regarding prospective entries, as well as information relating to anti-dilution fees in terms of Concorde Agreement. He is demanding a response from F1 no later than 21 May.

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READERS COMMENTS

 

1. Posted by Spindoctor, 12/05/2024 9:12

"Interesting how all those Big Money companies who extoll 'openness', 'freedom of choice' & 'competition' when trying to buy other businesses squeal like stuck pigs when someone has the temerity to question the veracity of their claims"

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

2. Posted by TokyoAussie, 10/05/2024 4:08

"I whole-heartedly disagree with the decision to exclude the Andretti team.
But the US house of representatives is not the forum for deciding this."

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3. Posted by Simon in Adelaide, 09/05/2024 4:07

"Stephano / FOM may have bitten off more than they can chew.

Jim Jordan's descriptions of the excuses as being pretextual and arbitrary are, I would suggest, somewhat generous and his observations as to competitiveness of some teams are in clear focus."

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4. Posted by gator, 08/05/2024 23:52

"Gym Jordan, demanding this is a joke. I don't see anybody say anything about goverment over reach. Yes, there needs to be an American Team."

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5. Posted by Anthony, 08/05/2024 18:41

"This still seems to be about obtaining benefit for American consumers.

Whilst I understand why Congress should have views about sports that are exclusively, or predominantly, based in the US, I remain unconvinced that the same should apply to sports that are predominately in other countries - races, team bases, team personnel etc etc"

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6. Posted by Wokingchap, 08/05/2024 14:42

"This is good i like it."

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7. Posted by BrightonCorgi, 08/05/2024 13:45

"Screwing with the Andretti's, GM, and American fans is sure fail by Liberty. Not much has bipartisan support in Congress, but looking into this will.

Perhaps a deeper dive in the US and Las Vegas GP's are needed by Congress? I'd suggest they let Andretti in before Pandora's box opens."

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8. Posted by rambler, 08/05/2024 12:22

"Donald probably rang Jordan after the race complaining that he wasn't on telly and they stopped him from collecting donations. Another Jim Jordan politically motivated non investigation of an investigation. Of cause Jim doesn't realize that the last say is with the FIA. As for the USA consumer, the only decent circuit in the USA is COTA, the other carpark/green tunnels are just annoying. With 35 venues vying to run F1 races, probably with more money, why pander to the USA. Its their loss!"

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9. Posted by kenji, 08/05/2024 11:09

"This is more like it. Now we may see some movement as it was beginning to look as though the various avenues for resolution had been exhausted. I am seriously hoping that Andretti get an entry to the series. More competition and two more seats avaialble for the admission of new talent. Just get your carts on track Mario...."

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10. Posted by Max Noble, 08/05/2024 9:38

"The off-track gift that keeps giving… The Law Courts! If Liberty elect to put up a fight this is going to be a classic knock-down drag ‘em out fight! Might explain why Ben S. Was looking so chipper in Miami…!
"

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