Senators seek Formula 1 antitrust investigation into Andretti Global

WASHINGTON – A bipartisan group of influential senators is calling on the Biden administration to investigate Formula 1 over its decision to reject Andretti Global from competing on the grid in the coming years, suggesting the sport may be violating American antitrust law as his US fan base grows.

They made the request in a letter sent Tuesday and seen by NBC News, led by Sen. Amy Klobuchar, D-Minn., chairwoman of the Judiciary’s antitrust subcommittee, and joined by the panel’s ranking member, Sen. Mike Lee. R-Utah.

The letter is addressed to Jonathan Kanter, assistant attorney general of the Department of Justice’s Antitrust Division, and Lina Khan, chairwoman of the Federal Trade Commission – two entities that share enforcement of antitrust law.

It is co-signed by Democratic Senators Gary Peters and Debbie Stabenow of Michigan, whose state is home to General Motors, which partnered with Andretti Global to build its engines. It is also signed by Sen. Todd Young, R-Ind., who represents the state where Andretti is based, and Sen. Alex Padilla, D-Calif.

The six senators said they were “concerned” that F1 may be acting on behalf of other teams, “including foreign carmakers”, to deny Andretti’s bid to enter the sport in 2025 or 2026, although its governing body, the FIA, has approved your request. . The management of Formula 1, the commercial side of the sport, rejected Your offer in January, doubting that the team would be competitive or value the championship.

“It is possible that such a refusal to agree – especially if orchestrated through a group boycott – could violate U.S. antitrust laws,” the senators wrote.

“Last year, F1 hosted three races in America, in Miami, Las Vegas and Austin, while no other country hosted more than a single race,” they added. “Clearly there is a financial incentive to add an American team to the F1 roster, and there is no reason for it to be blocked unless [Formula 1 management] is trying to isolate its current partners from the competition.”

The letter highlights the US government’s growing interest in F1 shares as it penetrates deeper into the American market with a growing fan base. A group of Chamber members held a press conference with Mario Andretti on May 1st to pressured F1 to admit its team, and Judiciary Committee Chairman Jim Jordan, R-Ohio, launched an independent investigation the following week. An investigation by the Department of Justice or the FTC would represent a significant escalation.

An F1 spokesperson did not immediately respond to a request for comment on the senators’ allegations. F1 and its American owner, Liberty Media, have not publicly addressed pressure from Congress to admit Andretti as the 11th team.

“The most significant way a new entrant would add value is by being competitive. We do not believe the candidate is a competitive player,” F1 said in its January statement rejecting Andretti, adding: “While the Andretti name brings some recognition to F1 fans, our research indicates that F1 would bring value to the Andretti brand. , rather than the other way around.”

Andretti Global commended the senators for Tuesday’s letter.

“We are pleased that Senators Klobuchar and Lee and their bipartisan colleagues joined members of the House and called for an investigation into Liberty Media’s practices,” an Andretti Global spokesperson said in a statement. “Our focus at Andretti Global remains on building a world-class Formula 1 team and being ready to compete in 2026.”