The European Union's antitrust enforcer said Thursday that the deal, which would see U.S.-headquartered Liberty Media take 86% ownership of Madrid-based Dorna Sports, the parent company of worldwide motorcycle racing league MotoGP, could lead to higher prices for the licensing of broadcasting rights for motor sports events.It said it would look into whether Liberty Media's largest shareholder, John Malone, can exert decisive influence over both companies, saying it is concerned that Liberty Media might have the ability and incentive to foreclose rival broadcasters where its parent company Liberty Global is active.The commission said Formula One and MotoGP compete closely and that the transaction raises concerns because it might remove important competitive constraints between both parties for the licensing of broadcasting rights for sports content. The EU merger regulator set a deadline of May 14 to end its investigation."By acquiring Dorna Sports, Liberty Media would hold the commercial rights to two of the most popular motor sports in Europe: Formula One and MotoGP," Teresa Ribera, the commission's new head of competition enforcement, said Thursday. The probe marks the first time the EU executive has escalated a merger review under Ribera, who succeeded former competition chief Margrethe Vestager earlier this month."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 motor sports fans through higher prices," she said. The regulator also will consider substantiated arguments from the companies about potential benefits for consumers if the deal is allowed to go ahead, Ribera said.Companies can offer the commission remedies to ease competition concerns and end an in-depth probe, which typically takes about 90 days but can last longer if the regulator needs more time to look at evidence. That can lead to companies scrapping their plans due to the increased uncertainty.Liberty Media agreed to acquire Dorna Sports in April in a deal valued at roughly €3.5 billion, or $3.62 billion, including a termination agreement that would see it pay 126 million euros if it walks away.The U.S. company now expects the deal to close at the end of June to account for the commission's probe, it said Thursday.

Liberty Media's MotoGP Bid Faces In-Depth EU Probe

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