The U.S. Department of Justice and 10 states have agreed to settle the landmark monopolization case against Live Nation-Ticketmaster. The settlement comes in the early stages of trial, before the court heard testimony from witnesses. The case joins the growing roster of antitrust matters that the Trump administration has actively and prematurely steered toward ineffective settlements. This stands in stark contrast to judicial outcomes, based on facts and evidence, that protect competition and consumers.
PPI’s Vice President and Director of Competition Policy, Diana Moss, released the following statement in response to the settlement:
“Live Nation-Ticketmaster has once again avoided justice by obtaining ineffective conditions that do little to rein in practices that stifle competition and harm fans in live events ticketing.
“The settlement reportedly requires Live Nation-Ticketmaster to commit to several conditions. These include: a payment of $200 million in damages to the states; allowing rival ticketing companies to list tickets on the Ticketmaster platform; a 4-year limit on exclusive contracts with independent venues, with a carveout that allows them to use competitors for a portion of ticket sales; the divestiture of more than 10 Live Nation amphitheaters; and a cap on ticket service fees at its amphitheaters equal to 15% of face value.
“This jumble of conditions do not constitute so-called ‘structural reform’ and are effectively a green light for Live Nation-Ticketmaster to engage in business as usual. Leading conditions are an open invitation for Live Nation-Ticketmaster to pursue the anticompetitive practices that are at the center of the government’s antitrust case.
“For example, the live events behemoth can continue to lock independent venues into exclusive contracts. Even if those contracts cover a shorter period of time, they will remain Live Nation-Ticketmaster’s leading tool for stifling competition in ticketing. Moreover, divestiture of Live Nation venues simply creates new independent venues that are targets for exclusives.
“Other conditions are a slap on the hand for Live Nation-Ticketmaster. The small damage award to states provides token restitution for millions of consumers. Giving rival ticketing companies ‘access’ to the Ticketmaster platform amounts to sharing a glitchy and outdated technology. More importantly, without extensive monitoring and reporting, Ticketmaster retains all the power to ensure that fans will have trouble accessing competitors’ tickets on its own platform.
“Finally, the settlement’s 15% cap on ticket fees is an easy concession for Live Nation-Ticketmaster. The company will more than compensate for the fee cap by continuing to squeeze out competition, steering even more fans back to its ticketing platform, and collecting monopoly ticket fees on tickets it sells.
“The settlement is a dark day for millions of live events fans and artists. The DOJ had the opportunity to finally get it right by fully litigating an antitrust trial on the merits. There are strong odds that the government would win on liability and break up the company to restore competition to ticketing and protect consumers. If the settlement moves forward, that outcome is now out of reach. The non-settling state AGs, under their own authority, should continue to pursue litigation and effective remedies on behalf of competition and consumers.”
Founded in 1989, PPI is a catalyst for policy innovation and political reform based in Washington, D.C. Its mission is to create radically pragmatic ideas for moving America beyond ideological and partisan deadlock. Find an expert and learn more about PPI by visiting progressivepolicy.org. Follow us @PPI.
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Media Contact: Ian O’Keefe – iokeefe@ppionline.org
