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America May 24, 2024 10 mins read

DOJ Sues Live Nation to Unwind Ticketmaster Merger

America ı By Rochdi Rais

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DOJ Sues Live Nation

The DOJ had called the deal extension, and tweaks, the "most significant enforcement action" the agency had taken on an existing antitrust consent decree in 20 years. The modifications were meant to clarify what type of conduct Live Nation is prohibited from engaging in when it comes to concert venues, and to allow for easier detection and enforcement if future violations occur.

The changes included adding language that expressly prohibited Live Nation from withholding concerts from a venue if the venue chooses a ticketing provider other than Ticketmaster, and from threatening to withhold concerts.

Those tweaks were not enough to assuage lawmakers and advocacy groups, especially in the wake of high-profile ticket sales debacles.

Sen. Amy Klobuchar, D-Minn., chair of the Senate Judiciary antitrust subcommittee, voiced alarm in November 2022 over the combined 70% control over ticket sales by Ticketmaster and Live Nation.

"In truth, there is no other choice," for buying and selling tickets, Klobuchar said at the time, describing the company as a monopoly and asserting that it's been quietly buying up venues and arenas. "It is a vertical integration. That is why we are pushing the Justice Department to look at this and to look at that consent decree, of which they have power over."

Live Nation at the time defended its business practices and the "competitive nature" of the industry, which it asserted the DOJ recognized.

"For the past 12 years Live Nation has operated under a consent decree that among other things seeks to prevent anticompetitive leveraging of Live Nation promoted content to advantage Ticketmaster. Pursuant to the amended decree voluntarily entered in 2020, Live Nation's compliance is monitored by a former federal judge," the company said at the time. "There never has been and is not now any evidence of systemic violations of the consent decree. It remains against Live Nation policy to threaten venues that they won't get Live Nation shows if they do not use Ticketmaster, and Live Nation does not reroute content as retaliation for a lost ticketing deal."

Lawmakers continued to investigate, only for Sen. Richard Blumenthal, D-Conn., chair of the Senate Permanent Subcommittee on Investigations, to accuse the companies a year later of failing to cooperate, prompting

a congressional subpoena demanding documents and internal communications related to Live Nation and Ticketmaster's "ticket pricing, fees and resale practices as well as the company's relationship with artists and venues," according to a statement Blumenthal released at the time.

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Rochdi Rais
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Rochdi Rais

Rochdi Rais is the Fractional Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.

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