US Congress Questions Formula One Over American Team’s Rejection

The US Congress has intervened in the controversial rejection of Andretti Global and General Motors’ (GM) bid to join the Formula 1 grid. Lawmakers are pressing the sport’s commercial rights holder, Formula One Management (FOM), for explanations, suggesting anti-competitive practices could be at play.

As Formula 1’s popularity continues to surge in the United States, the rejection of Andretti Global’s entry into the sport, in partnership with General Motors’ Cadillac brand, has sparked not just fan discontent but now congressional involvement. In a surprising twist in the saga, members of the U.S. Congress have escalated the issue by directly addressing Formula One Management (FOM), pointing to potential violations of competitive practices under U.S. law.

The initiative led by Andretti and GM, which hoped to cement its place on the F1 grid by potentially 2025 or 2026, received an optimistic start with initial approval from the FIA, the sport’s governing body. However, the commercial side overseen by FOM put a brake on their aspirations, rejecting the proposal. FOM’s decision was based on concerns regarding the competitiveness and the value addition that a new American team would bring to the grid. Moreover, they suggested a postponement of a possible entry until at least 2028, with the condition that GM develop its own F1 engine rather than merely play a technical partner role.

The congressional letter points to several critical issues, notably questioning the legitimacy of FOM’s decision, given the earlier green light from the FIA. The lawmakers have raised an eyebrow at the compatibility of FOM’s actions with the Sherman Antitrust Act—a core U.S. legislation aimed at maintaining fair competition among businesses.

Adding another layer to the complexity, the letter hints at the broader implications of GM’s potential market strategies in Europe, pondering whether this could have influenced FOM’s decision unfavorably against the American auto giant. The move by Congress to step into what may appear as a corporate-commercial dispute underscores the larger economic and symbolic stakes of having a robust American presence in Formula 1, which can expand the sport’s footprint in North America and potentially bring substantial economic benefits.

Mario Andretti has taken an active role in rallying support on Capitol Hill, reflecting the significant public and political interest this issue has generated. The congressional scrutiny delves into whether FOM’s decision could curtail the prospects of establishing a strong American automotive presence in the globally followed motorsport.

The letter reads, as quoted by ESPN:

“Under the Concorde Agreement, Formula 1’s governing document, up to 12 teams can participate. Currently, there are 10 teams competing in Formula 1 races. Previously the FIA Launched and led a comprehensive application process with the purpose of allowing one or more prospective teams to join Formula 1 racing series. Andretti Global, with its partner GM, submitted an application, and after receiving four applications, the FIA approved Andretti Global. Under what authority does FOM proceed to reject admission of Andretti Global? What is the rationale for FOM’s rejection, especially with respect to Andretti Global and its partner GM potentially being the first American-owned and America-built race team?

“The Sherman Antitrust Act of 1890 outlaws unreasonable restraints on market competition to produce the best outcome for the American consumer. How does FOM’s denial of Andretti Global and GM, American-owned companies, square with Sherman Act requirements, since the decision will benefit incumbent European racing teams and their foreign automobile manufacturing affiliates?

“We understand that GM intends to re-introduce its Cadillac brand into the European market, which would support thousands of good-paying American automotive jobs, especially with Formula 1’s worldwide audience and its halo effect on its teams and sponsors. How much did GM’s and Andretti’s entrance into racing competition taking a portion of the racing market share and GM’s entry into the European market taking market share each play into the decision to deny admission to the Andretti Global team, given the public outcry of incumbent Formula 1 teams against a new American competitor?”