Force India and Sauber have withdrawn their European Commission complaints against alleged anti-competitive practices in Formula 1, which were originally issued in 2015.
The two teams felt the sport had breached competition laws over the distribution of prize money and its governance, with only the top teams having a voice on future rules changes, while historical payments were made to a number of outfits on an annual basis.
However, in a joint statement issued on Thursday, both Force India and Sauber confirmed they had withdrawn the complaint following "encouraging dialogue" with Formula 1 CEO Chase Carey, who took control last year following Liberty Media's takeover from CVC and the ousting of Bernie Ecclestone.
"We have decided to withdraw the complaint we lodged with the European Commission in 2015 on the subject of anti-competitive practices in the sport of Formula 1," read the statement.
"We have been greatly encouraged by the dialogue that has been introduced following the appointment of Chase Carey as Executive Chairman and CEO of the Formula 1 commercial rights holder and his new management team.
"Their approach has brought a new culture of transparency to the sport and illustrates willingness to debate fundamental issues such as the distribution of the prize fund monies, cost control and engine regulations."
Carey and his team have already begun discussions on ways to improve the distribution of future prize money post-2020, while all teams are now permitted to sit in on Strategy Group meetings.
The joint statement added: "We are encouraged and reassured by the even-handed and fair negotiating approach taken by the new management of Formula 1 to all the teams and their issues.
"While the concerns leading to the compliant were fully justified, we believe this new approach provides the necessary degree of assurance that our concerns will be looked at objectively, and we prefer to resolve the issues facing the sport through dialogue rather than a legal dispute.
"We want to support this transformational process in Formula 1 and thus have resolved to withdraw our complaint with immediate effect."
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