US Congressional Members Express Concerns Over Andretti Global's Entry into Formula 1

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ICARO Media Group
Politics
01/05/2024 22h03

In a letter addressed to Liberty Media CEO Greg Maffei, a bipartisan group of members of the US Congress has expressed their concerns regarding the apparent anti-competitive actions that could hinder Andretti Global's bid to enter Formula 1. Led by Republican John James, the letter raises questions about the rejection faced by Andretti Global in their attempts to join the grid.

Andretti Global, in partnership with General Motors, has been working on a prospective F1 team. However, Formula One Management (FOM) has stated that it will only consider Andretti's application for the 2028 season when GM intends to build its own power unit. Although the entry was not entirely rejected, FOM's decision has caused frustration and raised eyebrows.

The letter contends that FOM's rejection seems to be motivated by the presence of established European Formula 1 race teams, many of which have affiliations with foreign automobile manufacturers that compete directly with American automotive companies like GM. The Congress members argue that blocking American companies from entering Formula 1 could be unfair, potentially violating American antitrust laws.

The letter also questions the authority under which FOM proceeded to reject Andretti Global's admission and seeks clarification on the reasoning behind the decision, especially considering that Andretti Global and its partner GM could be the first American-owned and America-built race team.

Moreover, the members of Congress raise the concern that FOM's denial of Andretti Global and GM may disregard the provisions set forth by the Sherman Antitrust Act of 1890. The Act prohibits unreasonable restraints on market competition to benefit the American consumer. By favoring incumbent European racing teams and their foreign automobile manufacturing affiliates, the decision could potentially undermine competition.

The letter acknowledges GM's intention to reintroduce its Cadillac brand into the European market, which could lead to the creation of thousands of good-paying American automotive jobs. With Formula 1's worldwide audience and its impact on racing teams and sponsors, the Congress members question whether FOM's rejection of Andretti Global and GM was influenced by their potential impact on the racing market and GM's entry into the European market.

The letter requests a response from Liberty Media by Friday, May 3, seeking clarification on FOM's decision. It should be noted that the letter does not refer to FOM's statement outlining their reasoning for focusing on the 2028 season for any potential Andretti Global entry.

FOM, in collaboration with the FIA, determines whether to add a new team to the grid. Their process, as outlined in January, requires both entities to consider an application suitable for the selection of a new entrant.

It remains to be seen how Liberty Media and FOM will respond to the concerns expressed by members of the US Congress. The outcome of this exchange could have significant implications for Andretti Global's aspirations to join the prestigious world of Formula 1.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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