The tussle between the live events behemoth Ticketmaster and its critics has reached a boiling point as a recently surfaced report, branded as “explosive,” alleging monopoly abuses by Ticketmaster/Live Nation has been ushered into the hands of the Department of Justice (DOJ), Federal Trade Commission, and several congressional committees, including the Senate Permanent Subcommittee on Investigations. The unveiling of such a report signals a potent escalation in the scrutiny over the ticketing giant’s business practices.
This contentious dossier, originally part of a lawsuit against Live Nation in 2019, outlines over a decade of purported anti-competitive maneuvers employed by Live Nation-Ticketmaster to consolidate their power in the live events market. The details, as disseminated by Rep. Bill Pascrell (D-NJ), paint a picture of an entity that has flagrantly exerted its monopoly might to the detriment of multiple stakeholders, including artists, venues, promoters, and most palpably, fans.
According to the report, Live Nation/Ticketmaster is accused of engaging in dubious financial strategies such as negotiating exclusive “rebates” with third-party vendors, a practice that has not only siphoned undisclosed financial gains but also potentially led to inflated event costs and ticket prices for consumers. These moves, structured within the company’s business model, may have led to artificially constructed “losses” or “low profits” on public statements while simultaneously ensuring a buoyant margin internally.
The findings are so damning that they have become a keystone in the argument of lawmakers calling for legislative reform in the industry, including the BOSS and SWIFT Acts. The report asserts that “Live Nation/Ticketmaster, their stockholders, and arenas are the primary beneficiaries of these business practices,” casting a long shadow on the live events titan’s purported fiduciary responsibility to other industry players.
The gravity of these allegations is compounded by Ticketmaster’s historical defiance. In the past, the company has resisted cooperation with regulatory probes, drawing the ire of the DOJ. In 2023, the fallout from the Taylor Swift Eras Tour presale fiasco further amplified calls for a DOJ antitrust lawsuit against Ticketmaster, leading to an ongoing investigation that is yet to culminate in decisive action.
Moreover, the Senate has displayed a voracious appetite for accountability, with Live Nation being subpoenaed after claims of “stonewalling” Senate committees requesting information on its practices. The bipartisan concern, epitomized by figures such as Sen. Amy Klobuchar (D-MN), who has been vocal about the potential need to dismantle the Live Nation-Ticketmaster conglomerate, indicates that the issue transcends political affiliation, united by a desire to safeguard consumer interests. “Live Nation is so powerful that it doesn’t even need to exert pressure, it doesn’t need to threaten, everyone just falls in line,” Klobuchar said.
As evidence stacks against Ticketmaster, its reliance on arguments that cast blame on ticket resale markets for consumer issues rather than its own policies appear increasingly frayed. Despite its substantial lobbying efforts and positioning, the calls for dismantling the company’s monopoly grow louder, with consumer advocacy groups and political figures alike pushing for a restoration of fair market dynamics in live event ticketing.
Relevant articles:
– “Explosive” Ticketmaster Report alleging monopoly abuses unearthed, passed to DOJ, Senate subcommittee
– MEADOR: Break Up Live Nation Ticketmaster To Protect Fans, Daily Caller, Fri, 26 Jan 2024 08:00:00 GMT
– DOJ Live Nation/Ticketmaster Antitrust Probe Deepens, Ticket News, Tue, 06 Feb 2024 17:04:47 GMT
– Senators urge DOJ to press Ticketmaster after Judiciary Committee hearing, NBC News, Thu, 23 Feb 2023 08:00:00 GMT