Formula 1 owner Liberty Media has presented its argument for why it believes its acquisition of MotoGP will receive approval from competition regulators, despite a previous case challenging joint ownership of MotoGP and F1. Liberty has been considering the purchase of MotoGP promoter Dorna Sports for some time, but concerns have been raised about potential violations of European Union anti-monopoly policies. This concern stems from a previous case in 2006 when private equity group CVC Capital Partners bought the majority of shares in Formula One Group while still owning MotoGP promoter Dorna. In order to complete the F1 takeover, CVC had to divest itself of its ownership in Dorna due to concerns about competition. These concerns were outlined in the decision to approve CVC’s F1 takeover, signed by then-European Commissioner for Competition Neelie Kroes. The decision was based on the lack of significant overlap between F1 and MotoGP in terms of motorsport regulators, advertisers, participating teams/manufacturers, and circuits. However, there was a significant overlap in TV rights markets, particularly in Spain and Italy, where F1 and MotoGP were considered each other’s closest substitutes. This raised concerns about potential price increases for TV rights and a reduction in consumer choice. Despite these concerns, CVC’s commitments were deemed sufficient to eliminate the risk. It should be noted that the impact on free-to-air TV markets was emphasized, as the business models of both F1 and MotoGP relied heavily on their presence on free-to-air TV. Liberty Media’s recent announcement of its investment in Dorna, acquiring an 86% ownership stake, is subject to regulatory clearance. CEO Greg Maffei expressed confidence that regulatory permission would be granted, citing changes in the market since the 2006 case and emphasizing that F1 and MotoGP are separate properties that will not be bundled together. Liberty plans to engage with regulators quickly and highlight the changes in the media landscape in the past 20 years. The company will file for antitrust clearance with relevant bodies in the EU, UK, Brazil, and Australia, and will also make foreign direct investment filings in Spain and Italy to address public interest concerns. Unlike CVC, Liberty Media is not under the same time pressures and believes the regulatory process will proceed smoothly and quickly.
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