The European Commission opened an investigation on Thursday to examine the purchase of Dorna SportsSpanish owner MotoGPof American Liberty Mediaowner of Formula Onefearing that it would limit competition and increase the prices of broadcasting rights for championships.
“By acquiring Dorna Sports, Liberty Media will have the commercial rights to two of the most popular motor sports in Europe: Formula One and MotoGP. We need to examine in more detail whether this acquisition could negatively affect issuersfor example in terms of increases in license fees and, ultimately, to consumers and fans through higher prices,” said vice president of the Community Executive Teresa Ribera in a statement.
The Commission’s preliminary investigation indicates that the transaction could reduce competition between Liberty Media and Dorna Sports in the provision of broadcasting rights for motor sports content, which would strengthen their position vis-à-vis content broadcasters and may, ultimately cause the price to rise.
In particular, Brussels believes that the purchase constitutes “serious concern” in respect of granting broadcasting licenses for motorsport content in small national markets in the European Economic Area where F1 is the clear market leader and MotoGP is usually the only competitor.
Community authorities also feared that the operation would remove “significant competitive pressures” between the two companies in some wider national markets in the licensing of distribution of all types of sports content or in possible segments of the markets. this, because “it seems that F1 and MotoGP compete closely.”
The Commission’s in-depth investigation, which has until May 14, 2025 to decide, will now determine whether these initial fears have been confirmed.
In it, Brussels will also examine whether the main shareholder of Liberty Media and Liberty Gobal, John Malone, has the ability to exercise a “decisive influence on both companies”, because, if so, the transaction would allow Liberty Media to exclude rival companies in countries where Liberty Global is active, particularly Belgium, Ireland and the Netherlands.
At the same time, Ribera added in the statement, Brussels will consider “any substantiated statement from the parties about the possible benefits that the acquisition could bring for fans, industry and consumers.”
The opening of an in-depth investigation does not prejudge its outcome, the European Commission recalled.
British investment fund Bridgepoint announced in April that it had sold its stake in Spanish Dorna Sports to Liberty Media for 4.2 billion euros.
Dorna is the international sports management, communications and marketing company that owns the global rights to organize the MotoGP and WSBK championships, the two most important motorcycle racing series in the world.
Liberty Media, headquartered in the United States, operates and has interests in a wide range of media, sports and entertainment businesses divided into two groups, Formula One and Liberty Live, and the exclusive owner of owns the commercial rights to the FIA Formula One World Championship.
Source: La Verdad
I’m Rose Herman and I work as an author for Today Times Live. My expertise lies in writing about sports, a passion of mine that has been with me since childhood. As part of my job, I provide comprehensive coverage on everything from football to tennis to golf.
