Ticketmaster owner Live Nation strikes tentative DOJ antitrust settlement as 25 US states fight on
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The news: Live entertainment and ticketing giant Live Nation Entertainment has reached a tentative settlement with the US Justice Department in a high-profile antitrust case that accused the concert giant of illegally monopolising the live music industry.
The context: The deal would allow Live Nation to avoid a forced sale of its Ticketmaster subsidiary but has thrown the ongoing trial into chaos, with a majority of state attorneys general rejecting the agreement and vowing to fight on.
Andrew Kline, a Justice Department lawyer, told the Manhattan federal court on Monday that Live Nation and the federal government had signed a binding preliminary agreement on Thursday evening, but neither side informed presiding judge Arun Subramanian until late Sunday. He called that process “absolutely unacceptable” and ordered both Live Nation chief executive Michael Rapino and acting DOJ antitrust head Omeed Assefi, to appear before him on Tuesday New York time.
Under the terms, Live Nation would pay up to USD280 million in damages, open its ticketing platform to rival companies and divest at least 13 amphitheatres, The Associated Press reported citing a senior DOJ official who spoke on condition of anonymity with journalists in a phone call under terms set by the department.
Bloomberg, also citing an unnamed DOJ official, reported that the deal would additionally cap ticket service fees at 15% at large venues and require Live Nation to provide artists with fan ticket purchase data.
In Australia, Live Nation controls ticketing through Ticketmaster and Moshtix, operates venues including Melbourne’s Palais Theatre and Festival Hall, Brisbane’s Fortitude Music Hall and Adelaide’s Hindley Street Music Hall, and promotes festivals including Splendour in the Grass and Falls Festival via its Secret Sounds acquisition. It has also absorbed booking agencies representing artists including Courtney Barnett and Vance Joy.
The numbers: Live Nation shares rose about 6% on the news.
What they said: New York attorney general Letitia James said in a statement the deal “fails to address the monopoly at the centre of this case” and that at least 25 states and the District of Columbia would continue the trial without the federal government.
Eight states, all with Republican attorneys general, had confirmed joining the settlement, Bloomberg reported. The anonymous DOJ official said a “double-digit” number of states were expected to sign on.
The sources: Associated Press, Reuters , Bloomberg
