Members of the United States Congress have written a letter addressed to Liberty Media to receive answers over Andretti and General Motors’ failed Formula 1 entry.
While the FIA accepted Andretti’s bid to enter the sport last October, the prospective American squad failed to receive the green light from Formula One Management.
FOM outlined that it cast doubt over Andretti’s potential to be a “competitive participant” as soon as 2025 but would be prepared to reconsider its venture come 2028.
Andretti has since continued its endeavour to become the 11th team on the grid with the opening of a new headquarters at Silverstone and more vacancies opening.
The US Congress serves as the voice for the people and has posted an open letter to Liberty President Greg Maffei voicing concerns over a violation of antitrust laws.
“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,” the letter began.
“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.”
The Congress has also taken issue that FOM’s denial “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. This is especially true considering Formula 1’s growing presence in the United States, including three Grand Prix motoring racing events in Miami, Florida; Austin, Texas; and Las Vegas, Nevada.”
The US Congress has placed a 3 May 2024 deadline for a response to the following questions:
1. “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?
2. “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?
3. “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?”
The letter concluded with the statement that it “continues 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.”
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