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The EU Competition Commission has launched a so-called Phase II investigation of Liberty Media's purchase of Dorna Sports. The Commission raised concerns over the market power the proposed purchase would give Liberty over broadcasting rights in the national TV markets in a number of EU member states.

The concern of the Commission is that the acquisition could allow Liberty to raise prices for the broadcasting rights of MotoGP and F1 in some countries. The Commission noted that F1 and MotoGP are each other's most direct competitors, and Liberty having control of both would reduce competition by not allowing broadcasters to choose between one or the other, or both. 

The statement by the Commission explicitly mentions investigating whether Liberty Global's largest shareholder, John Malone, would be able to exert 'decisive influence' over both F1 and MotoGP. In the investor briefing by Liberty, the US company tried to address this by stating that Dorna would continue to control MotoGP as a separate entity, and allow it full control over its calendar and broadcasting rights.

There is always some collaboration between F1 and MotoGP when it comes to the calendar, but that is mainly to try to avoid clashes between the two series, and especially to try to prevent races being scheduled in the same time zones or on the same continents. And with F1 increasingly looking to street circuits, there are fewer and fewer tracks where both F1 and MotoGP race.

The in-depth investigation has to be completed by May 14th, 2025, but could be completed earlier. The onus lies with Liberty Media to demonstrate that the purchase will not restrict competition between broadcasters, and not negatively affect fans. A statement by Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition and responsible for EU competition policy, said that the Commission would also investigate whether the deal could have potential benefits for fans and consumers.

The press release from the EU Competition Commission appears below:

Commission opens in-depth investigation into the proposed acquisition of Dorna Sports by Liberty Media

The European Commission has opened an in-depth investigation to assess, under the EU Merger Regulation, the proposed acquisition of Dorna Sports by Liberty Media. The Commission has preliminary concerns that the transaction could lead to higher prices for the licensing of broadcasting rights for motorsports events hosted by both parties.

Liberty Media and Dorna Sports are both international media companies. Liberty owns the Formula One Group and holds the exclusive commercial rights for the FIA Formula One World Championship. Dorna Sports holds exclusive commercial rights for the FIM World Championship Grand Prix (‘MotoGP') as well as other motorcycle racing championships.

The Commission's preliminary concerns

The Commission's preliminary investigation indicates that the transaction may reduce competition between Liberty Media and Dorna Sports in the licensing of broadcasting rights for motorsports content. In particular, the transaction may remove important competitive constraints on Liberty Media and Dorna Sports, which may strengthen their position vis-à-vis broadcasters of motorsports content and could ultimately lead to higher prices.

More specifically, the Commission found that:

• 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 (‘EEA'), where Formula One is the clear market leader in all European countries and MotoGP is most often its only competitor.
• 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.

The Commission will now carry out an in-depth investigation into the effects of the proposed transaction to determine whether its initial competition concerns are confirmed.

During its in-depth investigation, the Commission will also further investigate whether Liberty Media's and Liberty Global's largest shareholder, Mr. John Malone, is able to exert decisive influence over both companies. If confirmed, the transaction could also give rise to concerns that Liberty Media may foreclose rival broadcasters in countries in which Liberty Global is active, namely in Belgium, Ireland and the Netherlands.

The proposed transaction was notified to the Commission on 14 November 2024. The Commission now has 90 working days, until 14 May 2025, to take a decision.

The opening of an in-depth inquiry does not prejudge the outcome of the investigation.

Companies and products

Liberty Media, headquartered in the US, operates and owns interests in a broad range of media, sports and entertainment businesses. Those businesses are attributed to two groups: the Formula One Group and the Liberty Live Group.

Dorna Sports, headquartered in Spain, is active in sports management, marketing and media. In particular, Dorna Sports is the organiser and the holder of exclusive commercial and television rights of the MotoGP since 1992.

Merger control rules and procedures

The Commission has the duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the EU Merger Regulation) and to prevent concentrations that would significantly impede effective competition in the EEA or a substantial part of it.

The vast majority of notified mergers do not pose competition problems and are cleared after a routine review. From the moment a transaction is notified, the Commission generally has 25 working days to decide whether to grant approval (Phase I) or to start an in-depth investigation (Phase II).

There are currently no other ongoing Phase II merger investigations.

More information will be available on the Commission's competition website, in the public case register under the case number M.11539.

Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition

"By acquiring Dorna Sports, Liberty Media would hold the commercial rights to two of the most popular motorsports in Europe: Formula One and MotoGP. We need to more carefully assess whether this acquisition could negatively affect European broadcasters, for example in terms of increased license fees, and ultimately European consumers and motorsports fans through higher prices. We will at the same time openly consider any substantiated claims by the parties about possible benefits this acquisition might bring, for fans, the industry and for consumers."