The EU Commission is investigating possible antitrust violations by Liberty Media’s proposed acquisition of MotoGP – approval is ongoing
The European Commission, one of the EU’s main decision-making bodies with executive power, has announced that it will launch an in-depth investigation to clarify whether the purchase of MotoGP rights holder Dorna by Formula One owner Liberty Media violates EU competition law.
The takeover, announced in May, involves the US media company acquiring 86 percent of the shares in Dorna, worth 4.2 billion euros. However, the closing of the transaction – originally expected by the end of 2024 – is delayed due to the intervention of the European Commission.
According to a report by Bloomberg last week, the competition regulator announced on Thursday that the takeover would be examined more closely.
The aim is to clarify whether the deal violates EU antitrust laws, particularly with regard to a possible dominant market position of Liberty in the field of broadcasting rights for motor sports events in Europe.
Concerns of the EU Commission
“The transaction raises serious competition concerns in potentially narrow national markets for the licensing of broadcasting rights to motorsport content in the European Economic Area,” argues the Commission.
Formula One is the clear market leader in all European countries and MotoGP is usually its only competitor. “The merger could eliminate competitive pressure between the parties in some potentially larger national markets for the licensing of broadcasting rights for all sports content or possible segments of such markets,” the statement continues.
If Liberty Media, as a promoter, is also responsible for MotoGP in addition to Formula One, this could severely restrict competition in national markets for motorsport broadcasting rights and ultimately increase prices for consumers.
In addition, the Commission is examining the role of John Malone, the main shareholder in both Liberty Media and Liberty Global. It is examining whether his influence could lead to the exclusion of competing broadcasters in countries where Liberty operates, such as Belgium, Ireland and the Netherlands.
Extended timeframe for examination
The investigation is now entering a second phase, which may last up to 90 working days from the date of the contract template – November 14 – before a decision is made. The new deadline is therefore extended to May 14.
If Liberty Media withdraws from the takeover, the agreement with Dorna provides for a penalty payment of €126 million to the MotoGP promoter.
However, Dorna boss Carmelo Ezpeleta is confident: “We expect this acquisition to receive the necessary EU approval and we are excited about the potential opportunity to work with Liberty Media,” he emphasizes.
