Senators ask for investigation into Formula 1 over rejection of Andretti Global

A bipartisan group of senators wrote to the Biden administration asking the Department of Justice and the Federal Trade Commission to investigate Formula 1 for possible violations of U.S. antitrust law.

Formula 1, commonly known as F1, in January rejected former American racing star Michael Andretti’s application to join the racing network in a new team, sparking confusion in Congress.

In a letter obtained by The Hill, a group of seven senators led by Sen. Amy Klobuchar (D-Minn.) asked Jonathan Kanter, deputy attorney general for the Justice Department’s Antitrust Division, and Federal Trade Commission Chair Lina Khan to review whether Andretti’s exclusion from the sport violates U.S. regulations. antitrust.

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

Michigan Sens. Gary Peters (D) and Debbie Stabenow (D), in the state where General Motors is based, also supported calls for an investigation. If Andretti Global is approved to participate in the sport, General Motors will sign a contract to build the engines.

The senators write that Andretti-Cadillac is an American racing team backed by General Motors that is “trying to break into a competition dominated” by European teams and, despite meeting all the requirements to join Formula 1, was not approved to join Formula 1 anyway.

“This has raised serious concerns that Formula One members and sponsors may have colluded to exclude Andretti-Cadillac in order to isolate themselves from competition on the track and in the European car market,” the letter added.

The main reason for the FIA rejecting Andretti’s offer was that F1 did not believe that entering a team would add value to the championship.

However, senators criticized the sport for its reasoning, adding that the position that the Andretti-Cadillac team would not financially benefit F1 and would not be competitive, “particularly in terms of podiums and race wins”, was wrong.

They wrote that the vast majority of F1 teams fail to win races in any given season and that adding Andretti to the track would “increase competitiveness.”

“In 2023, one team won all but one race, and half of the teams in F1 have not won a single race in the last 4 seasons combined. This competitive balance has not been a hallmark of F1 racing, and adding a team backed by a major US automaker is likely to increase competitiveness, not reduce it.”

They also point to the sport making a concerted effort to attract more American fans, pointing out that more than a million Americans watched every F1 race, more than doubling over the past few seasons.

The letter also added that F1 hosted three races in the US, in Miami, Las Vegas and Austin, “while no other country hosted more than one race, and teams such as Red Bull Racing also hosted events in US cities, to rally support.”

“There is undoubtedly a financial incentive to add an American team to the F1 lineup and there is no reason why the Andretti-Cadillac team should be blocked unless FOM seeks to isolate its current partners from competition,” they added.

The letter comes just weeks after a bipartisan group of lawmakers wrote to Formula 1 owner Liberty Media demanding answers regarding Andretti Global’s exclusion from the sport’s grid.

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