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Home F1

Andretti investigation heats up as US officials contact F1 team bosses

A number of high-profile individuals in the Formula 1 paddock are understood to have been contacted by investigators over the United States Grand Prix.

Mat Coch
Mat Coch
30 Oct 2024
Mat Coch
//
30 Oct 2024
// F1
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Andretti investigation heats up as US officials contact F1 team bosses
Investigators in the United States have contacted a number of F1 team principals. Image: Moy / XPB Images

Investigators in the United States have contacted a number of F1 team principals. Image: Moy / XPB Images

Investigators in the United States have contacted a number of F1 team principals. Image: Moy / XPB Images

The United States Department of Justice is currently investigating potential antitrust concerns after Formula 1 refused Andretti Global entry into the championship.

The F1 fraternity’s recent visit to the United States provided an ideal opportunity for investigators to delve into elements of the saga.

As part of that, multiple sources have confirmed to Speedcafe that several team principals have been contacted regarding the investigation.

Liberty Media CEO Greg Maffei revealed the ongoing investigation during an investor call in August. He stated, “We intend to fully cooperate with that investigation, including any related request for information.”

That confirmation followed a series of letters sent from various government figures and bodies to Liberty Media, Greg Maffei (Liberty’s CEO), and F1 boss Stefano Domenicali in early May.

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The premise of those letters was to gain further information to understand whether a potential breach of the Sherman Act had occurred and ultimately led to seven US Senators requesting the Assistant Attorney General, Jonathan Kanter, and chair of the Federal Trade Commission, Lina Khan open an investigation into the matter.

“We have serious concerns that the reaction of Team Andretti-Cadillac was based on a desire to exclude a rival from the racetrack, marketing opportunities, and prestige that competing in F1 can lead to a car manufacturer competing to sell cars across the globe,” said the letter, sent on May 21.

According to the FTC, the Sherman Act “outlaws ‘every contract, combination, or conspiracy in restraint of trade,’ and any ‘monopolization, attempted monopolization, or conspiracy or combination to monopolize’.“

Andretti Global had intended to enter Formula 1 using the obligation to supply regulations for its power unit before partnering more fully with General Motors with its own F1 power unit for 2028.

In rejecting Andretti’s bid, F1 left the door open for a reassessment of the program at a later date, suggesting it would be looked at more favourably if it entered with an OEM in the first instance.

Regardless, the sentiment within the United States Congress was that, by denying Andretti’s entry, F1 had denied General Motors (through its Cadillac brand) the opportunity to compete in a global market that already contains a number of direct or potential rivals.

Ferrari, Mercedes, McLaren, Aston Martin, and Renault all have factory interests in Formula 1, while Honda is also represented as a power unit manufacturer.

Audi will join the championship formally from 2026 when it takes over title branding of Sauber, having acquired the entire operation earlier this year.

There are other elements to the situation too, including the public position adopted by rival teams while the entry was being assessed by Formula 1.

A number spoke negatively about the impact an 11th team would have on the championship and, more specifically, their own operations with a view towards potentially diminished prize money income.

Groupe Renault CEO Luca de Meo recently describing F1 as a “closed club,” with comments suggesting that exclusivity was an element in driving up the value of teams.

What impact the chorus of dissatisfaction from pit lane had on F1’s decision is unclear and a key component of the current investigation.

F1 went to pains to point out that the teams did not have a voice in the decision-making process and the assessment of the Andretti entry would be done on its merits alone.

“Our assessment did not involve any consultation with the current F1 teams. However, in considering the best interests of the Championship we took account of the impact of the entry of an 11th team on all commercial stakeholders in the Championship,” F1 noted in its statement rejecting Andretti.

In that same statement, Formula 1 made specific mention of the fact it had been in “consultation with key stakeholders to understand their view of the value that the Applicant would bring.”

Who those stakeholders were was not clarified.

There have been unverified claims of a WhatsApp group where the topic was discussed by several leading paddock figures, including a member of the commercial rights holder.

Should there be evidence of such conversations it could indicate a potential breach of the Sherman Act.

The situation has caught the eye of the European Parliament with similar concerns, and a call for an investigation, raised earlier this month which followed on from a similar complaint earlier in the month.

Meanwhile, despite having had its entry rejected, Andretti has continued to build its team as though it has a place on the grid for 2026.

It now boasts over 250 staff, including F1’s own former technical guru Pat Symonds, with more set to start before the end of the year.

Earlier this month, Speedcafe revealed it will also boast a 2026-spec chassis before Christmas.

Tags: andretti globalgreg maffeiliberty media
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