Ticketmaster Agrees To $10m Fine Over Computer Hack Of WMG's Songkick

Under Fire

TICKETMASTER agreed to pay a $10 million fine to escape prosecution over criminal charges accusing the company of hacking into the computer of a rival startup, according to the ASSOCIATED PRESS.

A judge in federal court in NEW YORK CITY rubber-stamped the deal in the legal battle that challenged TICKETMASTER’s marketplace dominance. The LIVE NATION subsidiary had been facing charges of conspiracy to commit hacking and wire fraud targeting BROOKLYN-based company SONGKICK

TICKETMASTER had already paid $110 million in 2018 to settle a civil suit brought by the same company

TICKETMASTER was accused of trying to infiltrate systems created by SONGKICK for artists that had hired the startup to help sell up to 10% of seats for U.S. tours directly through their fan clubs, an offer which cut into profits for the ticketing giant.

Acting U.S. Attorney SETH DuCHARME insisted TICKETMASTER “repeatedly — and illegally — accessed a competitor’s computers without authorization using stolen passwords to unlawfully collect potential business intelligence.” 

A statement from TICKETMASTER YESTERDAY (12/30) said that the conduct involved only two employees who were fired in 2017. “Their actions violated our corporate policies and were inconsistent with our values,” the statement said. “We are pleased that this matter is now resolved.”

SONGKICK is owned by the WARNER MUSIC GROUP. 

The scheme, hatched in 2014 by a former SONGKICK employee who joined TICKETMASTER and a co-worker. They hacked into accounts so they could identify SONGKICK clients and dissuade them from doing business with the company,.

In a memo obtained by the court, one of the employees boasted that TICKETMASTER could “cut SONGKICK off at the knees” if it could win back the pre-sale ticketing business for an unnamed major artist.

« see more Net News