Formula 1 receives letter from US Congress over Andretti rejection

Thursday, 02 May 2024 at 08:28

Formula 1 owners Liberty Media have received a letter from the US Congress following the rejection of Andretti Global's bid to join the sport's grid.

While F1's governing body, the FIA, gave Andretti Cadillac the green light to become an 11th F1 team, Formula One Management announced in a statement back in January that the aspiring American outfit would not provide value to the Championship.

Andretti and General Motors vowed to keep pushing with FOM in order to persuade them to accept their proposal, the latter even establishing a new base for them in the UK.

Now it has emerged that the US Congress has issued a letter to Liberty boss Greg Maffei questioning FOM's decision to reject Andretti Cadillac's submission.

The letter was penned by 12 members of Congress, a bipartisan group led by Rep. John James, and claimed Liberty were engaging in "Cartel-like behavior" by rejecting Andretti.

In their letter the Congressmen said: "We write to express our concerns with apparent anti-competitive actions that could prevent two American companies, Andretti Global and General Motors (GM), from producing and competing in Formula 1.

"This partnership, which includes GM and the thousands of its workers who we represent, would showcase exceptional American engineering and design skills, including the production of the only American-built and designed engine (power unit) in Formula 1," they added.

The letter pointed out the FIA approval given to Andretti being the "sole and independent arbiter of entry into Formula 1".

It then continued: "FOM's rejection appears to be driven by the current line-up of European Formula 1 race teams, many of which are affiliated with foreign automobile manufacturers that directly compete with American automotive companies like GM.

"It is unfair and wrong to attempt to block American companies from joining Formula 1, which could also violate American antitrust laws. Participation of all Formula 1 teams-including any American teams-should be based on merit and not just limited to protecting the current line-up of race teams," the Congressmen warned.

Liberty have questions to answer

The letter also referred to the increasing popularity of F1 in the United States with now three races being held there the first of which is the Miami Grand Prix this weekend with the United States Grand Prix in Austin and the Las Vegas Grand Prix following later in the season.

In conclusion the Congressmen posed questions for Liberty and FOM to answer, and gave them a deadline until May 3, 2024 to respond while noting that they would "continue to exercise oversight on this matter, and with the appropriate Federal regulators, to ensure that any potential violations of U.S. anticompetition law are expeditiously investigated and pursued".

The questions are as follows:

Under the Concorde Agreement, Formula 1's governing document, up to 12 teams can participate. Currently, there are 10 teams competing in Formula 1 races. Previously, the FIA launched and led a comprehensive application process with the purpose of allowing one or more prospective teams to join Formula 1 racing series. Andretti Global, with its partner GM, submitted an application, and after receiving four applications, the FIA approved Andretti Global. Under what authority does FOM proceed to reject admission of Andretti Global? What is the rationale for FOM's rejection, especially with respect to Andretti Global and its partner GM, potentially being the first American-owned and America-built race team?
The Sherman Antitrust Act of 1890 outlaws unreasonable restraints on market competition to produce the best outcome for the American consumer. How does FOM's denial of Andretti Global and GM, American-owned companies, square with Sherman Act requirements, since the decision will benefit incumbent
European racing teams and their foreign automobile manufacturing affiliates?
We understand that GM intends to re-introduce its Cadillac brand into the European market, which would support thousands of good-paying American automotive jobs, especially with Formula 1's worldwide audience and its halo effect on its teams and sponsors. How much did GM's and Andretti's entrance
into racing competition taking a portion of the racing market share and GM's entry into the European market taking market share each play into the decision to deny admission to the Andretti Global team, given the public outcry of incumbent Formula 1 teams against a new American competitor?