The European Commission will “exhaustively” investigate the purchase of Dorna Sports by Liberty Media

Given the possibility that the purchase of Dorna Sports on the part of Liberty Media result in higher prices for the licensing of broadcasting rights for sporting events, the European Commission has acted ex officio and has initiated an exhaustive investigation to examine, and subsequently authorize, the operation.

The analysis of the European Commission part of the consolidated role of both companies in the media ecosystem. Liberty Media is the owner of Formula One Group and holder of exclusive commercial rights to the Formula One World Championship of the International Automobile Federation (FIA), while Dorna Sports is the holder of exclusive commercial rights to the World Championship Grand Prix (Moto GP) of the International Motorcycling Federation (FIM) and on other motorcycle racing championships.

The Commission's preliminary investigation indicates that the operation may reduce competition between Liberty Media and Dorna Sports in the licensing of rights. Specifically, the operation raises” serious reservations"in potentially narrow national markets in the European Economic Area (EEA), a sector in which Formula One is the clear market leader in all European countries and MotoGP is, in most cases, its only competitor. Furthermore, the European Commission emphasizes that the operation can eliminate important competitive pressures, given that Formula One and MotoGP compete closely. All this would end up translating into possible price increases for the user final.

The European Commission will also investigate whether the main shareholder of Liberty Media and Liberty Global, John Malone, can exert a decisive influence on both companies. If confirmed, the operation could also raise reservations that Liberty Media can exclude rival broadcasters in countries where Liberty Global operates: Belgium, Ireland and the Netherlands.

In the words of Teresa Ribera, Executive Vice President for a Clean, Fair and Competitive Transition: "By acquiring Dorna Sports, Liberty Media would have the commercial rights to two of the most popular motor sports in Europe, Formula 1 and MotoGP. We must examine more closely whether this acquisition could negatively affect European broadcasters, for example, through higher licensing fees, and, ultimately, European consumers and sports fans through higher prices. At the same time, we will openly study "any substantiated statement by the parties about the possible advantages that this acquisition could bring to fans, the sector and consumers."

The proposed operation was notified to the Commission on November 14, 2024, although the news was made public in April 2024. The Commission currently has 90 business days, until May 14, 2025, to make a decision.