Live Nation makes final bid to avoid DOJ antitrust suit

Politico· Andrew Harnik/AP
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Lawyers and executives for Live Nation Entertainment, parent company of Ticketmaster, met last Thursday with senior leadership of the Justice Department — including Jonathan Kanter, the DOJ’s antitrust chief — according to two people with knowledge of the matter.

The meeting is part of a final, though likely unsuccessful, bid to stave off a high profile lawsuit in which the DOJ could eventually seek a breakup of the company.

Live Nation and Ticketmaster have been under investigation since at least 2022 over claims the entertainment giant is abusing its power. The DOJ is in the final stages of preparing an antitrust suit that could come as soon as this month, the people said. The exact timing of any case is still in flux and could slip into June or later, one of the people said.

While meetings between Kanter and a company’s lawyers are typically the last step before the department brings a case, the government is still deliberating over how to proceed, and Kanter and other DOJ officials are expected to meet with the company again, the people said.

DOJ staff attorneys recently deposed Live Nation CEO Michael Rapino and other executives in the run-up to a case, the people said.

POLITICO previously reported that the DOJ was preparing to file a lawsuit.

The exact claims in the potential lawsuit couldn’t be learned, but the Justice Department has focused in part on prohibitions on reselling tickets and exclusive deals with venues to only use Ticketmaster, POLITICO previously reported.

A case would add to the embattled company’s myriad policy and legal battles, and if successful, could potentially lead to a breakup of the company. Ticketmaster is a perennial target for lawmakers, regulators and music fans, and the latest wave of criticism kicked off in earnest following the botched sale of concert tickets for Taylor Swift in November 2022.

Ticketmaster is the largest ticketing company in the U.S. However, it says that its market share has fallen in recent years and is now significantly less than the 80 percent alleged by the DOJ in its 2010 case against the initial deal that merged Ticketmaster and Live Nation. It says companies including SeatGeek, AEG and Paciolan are chipping away at its dominance, and the company estimates it controls just half of the market if sporting events are factored in, POLITICO previously reported.

Spokespeople for the DOJ and Live Nation declined to comment.

Live Nation has denied violating antitrust laws, and argued there is no basis for breaking up the company.

Earlier this month on the company’s latest earnings call, finance chief Joe Berchtold said the company is about to start discussions with leadership at the DOJ’s antitrust division.

“As we previously stated, the DOJ's investigation appears to be focused on specific business practices, not the legality of Live Nation Ticketmaster merger or our overall business structure,” Berchtold said on the call. “Very little of the conduct that DOJ has raised with us relates to the combination of ticketing and promotion resulting from the merger. And most of what does, was anticipated and addressed by the consent decree allowing the merger to go forward. Based on the issues we know about, we don't believe a breakup of Live Nation and Ticketmaster would be a legally permissible remedy.”

Typically in antitrust cases, the government must first prove a company has violated the law before seeking a remedy. The DOJ just wrapped up its case arguing that Google has illegally monopolized the online search market. If a judge agrees, a separate proceeding will determine what to do about it.

Live Nation has been under federal oversight since 2010 after it merged with Ticketmaster. As part of a settlement with the government that allowed the deal to close, the companies agreed to sell off some ticketing assets, license its ticketing software and not force venues to use Ticketmaster. That settlement expired in 2020.

The company settled with the DOJ again in late 2019 over violations of the earlier agreement. The DOJ accused the company of using its dominant position in the live music industry to force artists and venues to use both its ticketing and concert promotion services. As part of the new agreement, the company agreed to extend court oversight via an independent compliance monitor through 2025.

The company has also drawn the ire of Congress. Sen. Amy Klobuchar (D-Minn.), who leads the Senate Judiciary antitrust subcommittee, along with other Senate Democrats urged the DOJ to seek a breakup if its probe finds anticompetitive conduct. And at a Senate hearing in January 2023, Sen. Mike Lee (R-Utah) questioned the wisdom of allowing the Live Nation-Ticketmaster merger to happen.

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