The Commission’s preliminary concerns
The Commission’s preliminary investigation indicates that the transaction may reduce competition between Liberty Media and Dorna Sports in the licensing of broadcasting rights for motorsports content. In particular, the transaction may remove important competitive constraints on Liberty Media and Dorna Sports, which may strengthen their position vis-à-vis broadcasters of motorsports content and could ultimately lead to higher prices. More specifically, the Commission found that:
- The transaction raises serious competition concerns in potential narrow national markets for the licensing of broadcasting rights for motorsports content in the European Economic Area (‘EEA’), where Formula One is the clear market leader in all European countries and MotoGP is most often its only competitor.
- The transaction may remove important competitive constraints between the parties on some potential wider national markets for the licensing of broadcasting rights for all sports content or possible segments of such markets. In particular, this is because it appears that Formula One and MotoGP compete closely.
The Commission will now carry out an in-depth investigation into the effects of the proposed transaction to determine whether its initial competition concerns are confirmed.During its in-depth investigation, the Commission will also further investigate whether Liberty Media’s and Liberty Global’s largest shareholder, Mr. John Malone, is able to exert decisive influence over both companies. If confirmed, the transaction could also give rise to concerns that Liberty Media may foreclose rival broadcasters in countries in which Liberty Global is active, namely in Belgium, Ireland and the Netherlands.The proposed transaction was notified to the Commission on 14 November 2024. The Commission now has 90 working days, until 14 May 2025, to take a decision.The opening of an in-depth inquiry does not prejudge the outcome of the investigation.
Companies and products
Liberty Media, headquartered in the US, operates and owns interests in a broad range of media, sports and entertainment businesses. Those businesses are attributed to two groups: the Formula One Group and the Liberty Live Group.Dorna Sports, headquartered in Spain, is active in sports management, marketing and media. In particular, Dorna Sports is the organiser and the holder of exclusive commercial and television rights of the MotoGP since 1992.
Merger control rules and procedures
The Commission has the duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the EU Merger Regulation) and to prevent concentrations that would significantly impede effective competition in the EEA or a substantial part of it.The vast majority of notified mergers do not pose competition problems and are cleared after a routine review. From the moment a transaction is notified, the Commission generally has 25 working days to decide whether to grant approval (Phase I) or to start an in-depth investigation (Phase II).There are currently no other ongoing Phase II merger investigations.More information will be available on the Commission’s competition website, in the public case register under the case number M.11539.
Quote(s)
By acquiring Dorna Sports, Liberty Media would hold the commercial rights to two of the most popular motorsports in Europe: Formula One and MotoGP. We need to more carefully assess whether this acquisition could negatively affect European broadcasters, for example in terms of increased license fees, and ultimately European consumers and motorsports fans through higher prices. We will at the same time openly consider any substantiated claims by the parties about possible benefits this acquisition might bring, for fans, the industry and for consumers.
Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition
Source – EU Commission