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Liberty Media has announced that it is facing an investigation by the US Department of Justice over rejecting Andretti Global's Formula 1 bid.
CEO Greg Maffei confirmed in a quarterly earnings call that the company that owns Formula 1 is officially being probed by the justice department's Antitrust Division over the legality of F1 refusing entry to Michael Andretti's team.
Partnering General Motors brand Cadillac, Andretti has long been pushing for an F1 entry as an 11th team, setting up a Silverstone base and going on a widespread recruiting spree, which includes former F1 man Pat Symonds.
And while the FIA accepted Andretti Global's bid on a technical level, F1 itself has kept the door shut on the American powerhouse because it didn't feel Andretti could become competitive in the medium term, and therefore wouldn't provide enough commercial value to the series.
F1 teams have also been reluctant to accept Andretti because they would have to share their prize pool with an additional entrant.
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Maffei said Liberty Media would co-operate with the Department of Justice and was confident F1 hasn't breached any US regulations.
“Looking at Andretti, as you saw this morning, we announced that there is a DoJ investigation,” Maffei told Wall Street business analysts on Thursday.
“We intend to fully cooperate with that investigation, including any related requests for information.
“We believe our determination, F1's determination, was in compliance with all applicable US antitrust laws, and we've detailed the rationale for our decision, vis-a-vis Andretti in prior statements.”
Maffei reiterated that F1 and Liberty Media aren't ruling out accepting an expansion team if it ticks all the boxes.
“We are certainly not against the idea that any expansion is wrong,” he said. “There is a methodology for expansion that requires approval of the FIA and the F1 and both groups have to find the criteria met.
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“We're certainly open to new entrants making applications and potentially being approved if those requirements are met.”
In May, the chairman of the United States House Judiciary Committee opened a probe into Liberty Media’s denial of Andretti’s F1 entry in an escalation of political interest.
It happened just days after team patriarch Mario Andretti appeared on Capitol Hill, which led to Republican Jim Jordan writing to F1’s owners demanding explanations for the decision-making process that has blocked Andretti’s hopes.