A tentative settlement between the Justice Department and Live Nation Entertainment over allegations of monopolistic control of the concert industry is drawing swift criticism from lawmakers and state officials who say the deal fails to address the company’s dominance in the live events market.
The Justice Department announced Monday that it had reached a preliminary agreement in its antitrust case against Ticketmaster and its parent company, Live Nation, a move that would avoid the possibility of breaking up the company. But according to the Washington Post, the deal quickly sparked backlash from many of the nearly 40 states that had joined the federal government’s lawsuit.
The proposed settlement, revealed in federal court in Manhattan during an ongoing antitrust trial, would require Live Nation to make several changes to its business practices. According to the Washington Post, those changes include capping ticket service fees at 15 percent, allowing rival ticket sellers such as SeatGeek and StubHub to list tickets through Ticketmaster’s platform, and limiting the company’s use of long-term exclusivity contracts with venues.
The agreement would also require Live Nation to end exclusive booking arrangements with at least 13 amphitheaters across the United States and pay up to $280 million in civil damages to states involved in the case, per the Washington Post. Justice Department officials argued the settlement could quickly increase competition and give artists and fans more options when purchasing tickets.
However, many state attorneys general said they were blindsided by the negotiations and objected to the terms of the agreement. According to the Washington Post, officials from more than 20 states and the District of Columbia signaled in a court filing that they intend to continue pursuing the lawsuit independently.
New York Attorney General Letitia James sharply criticized the proposal, accusing federal officials appointed under President Donald Trump of excluding states from settlement talks.
“The settlement recently announced with the U.S. Department of Justice fails to address the monopoly at the center of this case, and would benefit Live Nation at the expense of consumers. We cannot agree to it,” James said in a statement.
Tennessee Attorney General Jonathan Skrmetti, a Republican, also pledged to press forward with the case.
Related: Live Nation Nears Settlement in Federal Antitrust Case Over Ticketmaster
“Our resolve has not wavered,” Skrmetti said in a statement. “We are proud to stand with a powerful core of conservative AGs and bipartisan partners from across the country committed to continuing the fight.”
Criticism has also come from lawmakers on Capitol Hill. According to the Washington Post, Sen. Amy Klobuchar of Minnesota, who has long scrutinized Live Nation’s business practices, said the settlement raises concerns about transparency and effectiveness.
She described the negotiations as “troubling” and warned that “backroom dealings hurt consumers.”
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In an interview with the Post, Klobuchar said she believes the proposed changes would do little to curb Live Nation’s influence in the concert industry.
“These things may help on the margin,” Klobuchar said. “But they’re not gonna stop this monopoly dominance that should never have been allowed to happen in the first place.”
Industry observers and consumer advocates have also expressed doubts about whether the settlement would lead to lower prices. According to the Washington Post, some experts question whether allowing other ticket sellers to list inventory through Ticketmaster would meaningfully increase competition.
Stephen Parker, executive director of the National Independent Venue Association, warned the arrangement could confuse fans searching online for tickets.
The agreement could create confusion “for fans that are just Googling a show and wanting to buy tickets to it and not realizing that they’re buying from a reseller versus a primary ticketing provider or venue,” Parker said.
Meanwhile, the federal judge overseeing the case also raised concerns about how the settlement was presented. According to the Washington Post, U.S. District Judge Arun Subramanian criticized Justice Department lawyers after learning about the agreement only shortly before it was disclosed in court. Government attorneys acknowledged that a tentative term sheet had been signed days earlier while testimony in the trial was still ongoing.
Despite the criticism, Live Nation defended the proposal and said it would improve the concert experience.
“Today marks a major step in improving the concert experience for artists and fans throughout the United States,” Live Nation CEO Michael Rapino said in a statement. “By giving artists greater flexibility in choosing their promotional partners and ticketing strategy while also keeping the cost of a concert more affordable for fans, we are putting more power where it should be — with artists and fans.”
Still, according to the Washington Post, the settlement must be approved by a judge and faces significant resistance from states determined to continue challenging Live Nation’s dominance in court.
Source: The Washington Post
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