Reportedly, the European Union is set to scrutinize the acquisition of MotoGP by Formula 1 owner, Liberty Media. In April, it was revealed that the American media giant had purchased approximately 86 percent of the world’s largest motorcycle championship. However, the EU fears that Liberty Media may soon monopolize the two biggest motorsports in Europe. This could unnecessarily stifle competition in the broadcasting and streaming sector.
In April, Liberty Media announced that it would acquire a significant portion of MotoGP’s parent company, Dorna. The deal cost the Americans around 4.2 billion euros. The management of the Spanish company, Dorna, would retain about 14 percent of the shares. At the time, there was speculation about the feasibility of such a takeover, as the EU enforces strict rules to ensure and promote fair competition.
Protecting the Consumer
This week, Bloomberg News reported that the EU’s new antitrust chief, Spain’s Teresa Ribera, is indeed concerned that Liberty Media’s acquisition of MotoGP could have far-reaching implications for competition in the broadcasting and streaming sector. If MotoGP and Formula 1 come under the same umbrella, the prices for broadcasting rights could unnecessarily increase. This is, of course, bad news for consumers, who will have to dig deeper into their pockets to follow one or both championships. Reportedly, the EU has initiated the second phase of the investigation; the deadline for presenting the findings is said to be December 19.
Liberty Media struck a deal to buy Formula 1 from the shareholder group CVC in 2016. The latter party once owned both Formula 1 and MotoGP but was forced to sell one of them. Under the European rules of 2006, it was not allowed to own both racing classes simultaneously.
