Yes. Couldn't agree more with Kit's post. This is the same debate that went on last year too, where a few of such 'F1 photo competitions' actually seemed like seeking good pics 'for free'.
Separately, as far as I know (and please correct me if I am wrong), the F1 tickets' Terms & Conditions clearly states that any photography is for personal/ non-commercial purposes and all commercial rights of the images/ videos are retained by FIA/F1 organizers. So not sure, whether legally these competition organizers can use these pics for their commercial purposes (and whether the photographers can give the rights of the pics to them for any potential monetary or equivalent consideration, because they dont have that right in the 1st place)