By Adam Tate, Associate Editor
US based Liberty Media’s $8 billion buyout plan of Formula One is set to face its first regulatory hurdle as the UK’s Competition and Markets Authority (CMA) may mount an investigation into the plan to ensure that the deal doesn’t violate antitrust and anti-competition laws.
The CMA released the following statement on the matter.
“The CMA is considering whether it is or may be the case that this transaction has resulted in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if, so, whether the creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”
This is of particular significance as the UK is home to not only Formula One itself, but also home to 7 of the 11 teams competing in the championship. The CMA has asked that anyone concerned about the deal submit relevant information to them by November 21st.
They will further address the issue after the holidays, on January 5th when it will make the decision to formally investigate or approve the deal.
The news comes as for now, a minor blow to Liberty’s chances as the US company is keen to help build the sport, especially in the US, where it just enjoyed record attendance last month at Circuit of The Americas in Austin, Texas.