Silverstone given DTI all-clear

The Commission questioned whether Octagon's deal, which was struck last December with Silverstone's owners the British Racing Drivers' Club, broke industry monopoly rules.

DTI minister Brian Wilson said: "The Competition Commission has conducted a thorough investigation into this acquisition and has concluded that it does not operate against the public interest."

Under the deal, Octagon holds the lease to Silverstone and all promotion of the circuit's activities for 15 years. They also own the rights to Brands Hatch, Snetterton, Oulton Park and Cadwell Park, giving them control over five of the most important 18 British licensed race circuits.

The Commission's 'no monopoly' verdict was based on a number of points. Firstly, the choice of circuits not owned by the group has been judged to be sufficient. The report states that Octagon will not raise prices for their events to avoid pushing spectators towards other sporting and leisure activities instead. Also, Silverstone faces competition in the Midlands from non-Octagon tracks Donington Park, Mallory Park and the new Rockingham Motor Speedway, while the deal will not affect the prices at Brands Hatch in Kent.

Secondly, Octagon has been cleared of favouring their own track day arm, known as On Track, over rival organisations for the hire of circuit time at the five venues. On Track only accounts for one fifth of the track days held at Octagon circuits.

The third point concerned Octagon's dominance within British Motorsport Promoters, which holds the rights to the UK's top motorsport championships. The power within BMP is broken up equally between 12 circuits. By bringing Silverstone under the Octagon umbrella, the deal gave Octagon control of almost half of the circuits. But the Commission found that the addition of Silverstone made little difference to BMP - the report states that Octagon "was already in effective control before the acquisition".

Although Ocatgon is in the clear, they will still be closely monitored by the government. Wilson said: "The Commission has proposed that the Director General of Fair Trading should review the operation of the relevant markets within five years. The General Director has agreed to do so."

Today's announcement will come as a huge relief not only to Octagon, but to the BRDC. The lease deal has been viewed by leading figures in the sport as a guarantee of Silverstone's place as the home of the British GP for the long-term future. The Commission disagreed that if they had outlawed the merger, it would have cost Britain its place on the Formula 1 calendar. But a damning report would have brought new turmoil to Silverstone and would have caused months of uncertainty over its future.

But even with the blessing of the government, Silverstone's British GP saga is not over. This week, the Motor Sports Association, Britain's racing governing body, announced that it has opened an independent inquiry into the traffic problems that continue to blight the race. This is in response to fears that the jams could cost the race its place on next year's F1 calendar. The British GP is expected to only get a provisional date for 2002, until it is proved that Octagon will make significant changes to solve the problems.