U.S. Government Preparing To Take Legal Action Against Live Nation

U.S. Government To Take Legal Action Against Live Nation
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The U.S. Justice Department is reportedly taking legal action against Live Nation, the world’s largest concert promoter, over allegations that the company has been trying to coerce concert venues to use its Ticketmaster subsidiary. This news comes just a few months after it was announced that the Justice Department was officially investigating whether Live Nation had violated the consent decree that was put in place to allow the company to acquire Ticketmaster almost ten years ago.

The consent decree, which was intended to maintain competition in the ticketing marketplace and prevent prices from soaring for consumers, required that the company behave in a way that would ensure fair competition. However, critics of the decree claim that prices have indeed soared due to Live Nation’s alleged conduct. According to Pollstar, ticket prices for concerts have increased by 50% since the acquisition of Ticketmaster, with an average ticket price now standing at $92.42.

Despite these claims, Live Nation has repeatedly insisted that it has been in full compliance with the decree. Michael Rapino, the CEO of Live Nation, has stated that the decree allows the company to make decisions that are in its best interest. Booking tour dates at a venue that does not use Ticketmaster may not make sense for the company, according to Rapino.

Sources close to the matter have stated that the Justice Department will not only ask the judge to prevent further improper behavior on the part of Live Nation, but it will also request that the judge extend the term of the consent decree for several years. The Justice Department has accused Live Nation of using its dominance in concert promotion to benefit its ticketing business at the expense of consumers.

In 2010, Live Nation’s acquisition of Ticketmaster created an entity that essentially controls 80% of the U.S. ticketing marketplace. This has raised concerns about the company’s conflict of interest, as it is both the largest concert promoter in the world and the dominant player in the ticketing industry.

Many U.S. legislators have criticized the consent decree, which they believe has failed to prevent Live Nation from engaging in anti-competitive behavior. The legal action being taken by the Justice Department is therefore seen as a significant step towards addressing these concerns and ensuring fair competition in the ticketing marketplace.

Live Nation has not yet commented on the allegations or the legal action being taken by the Justice Department. However, the company is likely to vigorously defend itself against the accusations and any attempts to extend the consent decree beyond its current term.

This legal action is significant not only for Live Nation and the ticketing industry but for the wider entertainment industry as a whole. Concerts and live events are a major source of revenue for artists, promoters, and venues, and any attempts to inflate ticket prices or restrict competition could have a significant impact on the industry as a whole. It remains to be seen how this legal action will play out, but it is likely to be closely watched by all those involved in the entertainment industry.

2 Responses

  1. Tom Hendricks

    This is part of that music revolution that you guys go out of your way to block. Don’t think the thousands involved don’t see what is going on.
    Part of that revolution is to get a music media that covers all aspects of music.
    Things are changing. DMN needs to grow too.

  2. Andy Gensler

    Remember that one time Rapino confirmed that LN was a monopoly?