Senators Call On DOJ To Investigate Live Nation

Under Scrutiny.

In the wake of JOHN OLIVER's damning report on the relationship between LIVE NATION and TICKETMASTER on last weekend's "LAST WEEK TONIGHT," U.S. Senators RICHARD BLUMENTHAL and AMY KLOBUCHAR urged the DEPARTMENT OF JUSTICE to determine if the promoter is in compliance with a 2010 consent decree.

LIVE NATION's stock took a 1.3% drop in the wake of the calls for an investigation, though it ended up rebounding to $112.01, up 3% from TUESDAY, when the news was first reported. 

The letter states, “There is little evidence that live event ticketing or related markets are any more competitive today than they were in 2010. There have been few new entrants in these markets and troubling indicators of durable market power, such as excessive processing fees imposed on consumers that exceed one-quarter of a ticket price.” According to TICKETMASTER, ticketing fees are not determined by the company but mainly by venues — though LIVE NATION either promotes or owns hundreds of venues.  

“The live entertainment industry has never been more vibrant and competitive, which is evident from the many companies that continue entering the market and growing,” LIVE NATION ENTERTAINMENT said in a statement. “We are proud of the many progressive policies we have innovated and advocated for – from refunds, to all-in pricing, transparent resale disclosures and more. We will continue using our influence to improve the industry.”

The consent decree established at the time of the merger between LIVE NATION and TICKETMASTER was meant to ensure the combined entity did not extort artists, venues or promoters into using their services.

A 2019 settlement included minor adjustments to the decree, including tightening the ban on LIVE NATION's threats to retaliate against venues. TICKETMASTER sales representatives are also not allowed to discuss content bundles with venues or detail how facilities get preference for shows. LIVE NATION can still give TICKETMASTER venues priority over other venues.

The Senators' letter states, “Industry participants have long complained about LIVE NATION leveraging its powerful market positions in ticketing, event promotion, sponsorship and advertising, artist management, and performance venue bookings to advantage its affiliate businesses up and down the entertainment value chain.

“Multiple reports indicate the industry is rife with practices that prevent consumers from accessing tickets at affordable prices or prevent access entirely, including holdbacks and staggered sales, bots, lack of all-in pricing, and the reselling of free tickets," the letter continues. "We are deeply concerned that the DEPARTMENT’s past enforcement and negotiated remedies in this industry have failed to adequately foster and protect competition in live entertainment and ticketing markets.”

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