WASHINGTON (CN) — Just weeks after a Formula One car raced down Pennsylvania Avenue just steps from the U.S. Capitol, one of the sport’s most prolific American figures joined lawmakers on the Hill to protest his company’s snub from a spot on the F1 grid.
“We have done everything that has been asked of us,” said Mario Andretti, 1978 Formula One world champion, during a news conference Wednesday. “Now it’s time for a decision to be forthcoming.”
The Formula One organization’s American parent company, Colorado-based Liberty Media, rejected a bid from Andretti Global and Cadillac to enter the racing championship earlier this year.
The media company reasoned at the time that adding another team to the current grid of 10 — which includes other manufacturer teams such as Mercedes-Benz and Renault’s Alpine subsidiary — would “not, in and of itself, provide value to the Championship.” Liberty Media also contended that Cadillac owner General Motors could struggle to compete with the rest of the F1 grid as a new engine supplier.
The rejection came as a surprise to some followers of Andretti’s Formula One bid, which had been approved by international motorsport body the Federation Internationale de l’Automobile in October.
But while Formula One’s owners argued their decision to scrap the bid was rooted in their projection of Andretti’s popularity and competitiveness in the racing league, lawmakers suggested Wednesday that the real reason was more nefarious.
“Liberty Media is kicking the can down the road to get a more juicy deal for themselves,” said Michigan Representative John James.
In a letter sent Wednesday morning to Liberty Media CEO Gregory Maffei, James, a Republican, posited that the company may have violated U.S. antitrust law by enforcing “unreasonable restraints on market competition.”
Liberty Media’s rejection “appears to be driven by the current line-up of European Formula 1 race teams,” the lawmaker wrote, “many of which are affiliated with foreign automobile manufacturers that directly compete with American automotive companies like GM.”
James demanded to know how Liberty Media’s decision to reject the Andretti-Cadillac bid fit into the constraints of antitrust law and F1 regulations which allow as many as 12 teams to compete in the championship simultaneously.
The Michigan congressman also asked Maffei whether the company based its decision to scrap Andretti’s application on the possibility that Cadillac, poised to reenter the European autos market, could eat up the market share of other marques.
At Wednesday’s news conference, James stopped short of saying explicitly that Liberty Media had run afoul of antitrust protections but opened the door to that possibility.
“I’ll let you figure out if this is cartel-type behavior — if this is anti-competition, monopolistic type behavior,” he told Courthouse News, but pointed out that Liberty Media also owns a controlling stake in Live Nation, which is currently under antitrust investigation by the Justice Department.
“I believe in limited government,” said James, “but I also believe that our role is the general welfare and to protect American consumers to ensure free and fair trade across our borders with our friends and allies.”
The Michigan Republican also said that he had spoken to Ohio Representative Jim Jordan, chair of the House Judiciary Committee, who he said is “very interested in learning more,” opening up the possibility that Congress could haul Liberty Media executives before the panel to answer questions about the Andretti-Cadillac bid.
“I hope it doesn’t come to that,” said James, adding that he hoped Liberty Media would honor Andretti’s existing FIA approval and Formula One regulations. But otherwise, he said, “there may be hearings, and the American people will learn about your motivations.”
Indiana Representative Victoria Spartz argued that Liberty Media should consider the Andretti-Cadillac bid an opportunity to showcase American ingenuity on the world stage.
“I think that would be in their interest,” she said. “They should be begging us to participate, not trying to make it more difficult.”
Spartz accused the “good old boys’ club” of European Formula One teams of avoiding more competition. “But competition makes all of us stronger,” she said. “America’s presence around the world makes the rest of the world stronger.”
Andretti, meanwhile, told reporters that he was still gunning to get his racing team a slot on the F1 grid.
“Andretti Global is part of every major racing discipline in the world,” he said. “You can see we’re all in, and Formula One is the one that’s left. We want to be part of that.”
The Daytona 500 and Indianapolis 500 winner acknowledged that another Formula One team, U.K.-based Red Bull Racing, had been in Washington earlier this month to put on a showcase event with former F1 driver David Coulthard.
It was a widely attended event, and one which Andretti said strengthened his team’s resolve to secure a spot as a Formula One contender.
Liberty Media, which assumed ownership of the F1 organization in 2016, has been on a blitz to build out the championship’s American audience. The global series runs races in Austin and has recently added Miami and Las Vegas to its calendar.
James held up the Red Bull event in Washington as yet another example of the company’s U.S. marketing push.
“They wanted America’s attention,” he said. “You have it.”
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