European parliament backs call for Formula 1 investigation

The European parliament has thrown its support behind calls for an investigation into anti-competition practices in Formula 1

European parliament backs call for Formula 1 investigation

Anneliese Dodds, a UK member of the European parliament, has long pushed for the European Union competitions commission to investigate F1's governance and payment structure.

Force India and Sauber lodged a complaint to the body in 2015 and though the EU created a new internal division to deal with sporting matters - of which the F1 case is one - a formal enquiry has yet to be initiated.

In January, the parliament produced a competition report, which makes recommendations for the European Commission's agenda.

Dodds submitted an amendment in the 184-item report that "calls for an immediate investigation into competition concerns arising from the Formula 1 industry".

This was approved and when the report was put to a vote on Tuesday, it passed by 467 votes to 156, with 86 abstentions.

While the EU competitions commission is not duty bound to launch an investigation, this latest development will increase the pressure for it to take action.

"I'm happy that today the European Parliament backed my call for a full and immediate investigation into anti-competitive practices in Formula 1," said Dodds.

"A few weeks ago Manor Racing became the latest team in the south east of England to collapse after administrators failed to find a buyer.

"Smaller teams are unfairly punished by an uncompetitive allocation of prize money that will always give the biggest teams more money, even if they finish last in every race.

"The problems in Formula 1 extend well beyond the allocation of prize money, with serious concerns being raised about an agreement with HM Revenue and Customs that allowed the sport to pay an effective 2% tax rate."

Beyond the distribution of prize money and tax arrangements, Dodds highlighted concerns over F1's sale to Liberty Media, through which governing body the FIA benefitted financially once it had given its approval.

"There is also significant conflict of interest over the recent sale of the sport to Liberty Media, after the regulator received a $79.5million (£63.7m) profit from authorising the sale," she said.

"I have written a number of letters to the European Commission calling for a full investigation and I am grateful that the rest of the European Parliament has added its voice to this call.

"We must ensure that we don't lose even more highly skilled jobs in this sector and allow a sport loved by 500million fans to become increasingly less competitive."

If the EU decides to investigate and F1 is found culpable of an abuse of power in the way it handles its affairs, a fine of 10% of turnover - which last year was over £1billion - can be levied, as well as forcing a shake up of its structure.

shares
comments
Sauber F1 team talking with Ferrari about Giovinazzi reserve role
Previous article

Sauber F1 team talking with Ferrari about Giovinazzi reserve role

Next article

Formula 1 should consider active suspension, says Boullier

Formula 1 should consider active suspension, says Boullier
The relaxed home life that helps F1’s Danish superstar to deliver Plus

The relaxed home life that helps F1’s Danish superstar to deliver

The unrelenting grasp of the tax man prompts most racing drivers to move to the likes of Monaco, Switzerland or Dubai. But, as OLEG KARPOV found out, Kevin Magnussen is quite happy where he is, thank you very much – at home, with his family, in Denmark

Formula 1
Oct 5, 2022
How Perez has shown what many F1 drivers need from the 2022 season run-in Plus

How Perez has shown what many F1 drivers need from the 2022 season run-in

OPINION: Sergio Perez’s Singapore triumph arrested a big decline in his Formula 1 performances against Max Verstappen at Red Bull since his Monaco win. He now needs to maintain his form to the season’s end, while others are also seeking a change in fortunes

Formula 1
Oct 5, 2022
How the FIA should punish any breaches of the F1 cost cap Plus

How the FIA should punish any breaches of the F1 cost cap

OPINION: On Wednesday, the FIA will issue F1 teams with compliance certificates if they stuck to the 2021 budget cap. But amid rumours of overspending, the governing body must set a critical precedent. It needs to carefully pick between revisiting the bitterness of Abu Dhabi, a contradictory punishment and ensuring parity for the rest of the ground-effect era

Formula 1
Oct 4, 2022
Singapore Grand Prix Driver Ratings 2022 Plus

Singapore Grand Prix Driver Ratings 2022

A testing return to the Singapore Grand Prix in tricky conditions created plenty of hazards and mistakes for the Formula 1 drivers to fall into. That partly explains a number of low scores, including from a handful of high profile runners, allowing others to take a starring role under the floodlights

Formula 1
Oct 3, 2022
The two key contributors to Leclerc's defeat to Perez in F1's 2022 Singapore GP Plus

The two key contributors to Leclerc's defeat to Perez in F1's 2022 Singapore GP

In a marathon Formula 1 Singapore Grand Prix, Sergio Perez’s victory was only assured hours after the race due to a stewards investigation. Throughout the contest the Red Bull driver impressively held off Ferrari’s Charles Leclerc in changing conditions to see the Mexican pull out enough of an advantage to negate his post-race penalty

Formula 1
Oct 3, 2022
The time-honoured manufacturer model that can't apply to all F1 teams Plus

The time-honoured manufacturer model that can't apply to all F1 teams

What happens, asks MATT KEW, if the old adage of win on a Sunday, sell on a Monday is no longer true for F1 manufacturers?

Formula 1
Oct 2, 2022
Why is Oscar Piastri F1's most sought-after rookie? Plus

Why is Oscar Piastri F1's most sought-after rookie?

The Australian rising star is fast, consistent, confident, adaptable and has shown excellent racecraft, but there’s already a taint to his reputation. That hasn’t stopped him becoming the hottest property in this year’s F1 driver market and why McLaren moved fast to snap up the 21-year-old

Formula 1
Sep 30, 2022
The unintended benefit that F1's new engine rules era will deliver Plus

The unintended benefit that F1's new engine rules era will deliver

Formula 1's incoming engine rules shake-up has multiple targets. But it may also solve what has been a bone of contention since the hybrids arrived in 2014. The new plan will allow the series to pump up the volume

Formula 1
Sep 29, 2022