The European Union's highest institution will open an "in-depth investigation" to determine whether the purchase of MotoGP by Formula 1 owner Liberty Media violates its antitrust framework.
The European Commission, one of the EU's decision-making bodies with executive power, is determined to closely analyse Liberty's acquisition of Dorna, which holds the rights to the MotoGP World Championship.
The wording of the purchase, announced in May, stipulates that the American media company would acquire an 86% stake in Dorna that would value the Spanish firm at 4.2 billion euros.
However, the transaction, which was initially due to take place before the end of 2024, will not be completed within the expected timescale due to the intervention of the European Commission.
Following an initial report by Bloomberg last week, the competition regulator announced on Thursday that it is opening an "in-depth investigation" to clarify whether the deal violates the antitrust framework established by the office headed by Teresa Ribera, who serves as vice president of both the Commission and the Spanish government.
The suspicion revolves around the possibility that MotoGP's acquisition could place Liberty, which already owns F1, in a dominant position in the market for granting race broadcasting rights in Europe - and that would ultimately lead to an increase in consumer prices.
"The transaction raises serious competition concerns in potential narrow national markets for the licensing of broadcasting rights for motorsports content in the European Economic Area, where Formula One is the clear market leader in all European countries and MotoGP is most often its only competitor," argued the commission in first of the two points on which it based its decision not to approve the purchase immediately.
"The transaction may remove important competitive constraints between the parties on some potential wider national markets for the licensing of broadcasting rights for all sports content or possible segments of such markets. In particular, this is because it appears that Formula One and MotoGP compete closely," it added.
At the same time, the commission will further investigate the influence of John Malone, who is the main shareholder of both Liberty Media and Liberty Global, and whether that could drive out rival broadcasters in countries in which Liberty operates, such as Belgium, Ireland and the Netherlands.
The investigation is now entering a second phase which can last up to 90 working days from the date of submission of the contract – 14 November – before deciding to go in one direction or the other. The new deadline is therefore extended to 14 May.
The agreement between Liberty and Dorna stipulates that Liberty would have to pay a sum of 126 million euros to the MotoGP promoter if it withdraws its offer.
