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| Live Nation Agrees to Extend Settlement With U.S. on Ticketing Practices | Live Nation Agrees to Extend Settlement With U.S. on Ticketing Practices |
| (32 minutes later) | |
| Live Nation said Thursday that it had reached a tentative settlement with the Justice Department, which was investigating whether the company had used its control over the concert touring business to pressure music venues into using its Ticketmaster subsidiary. | |
| Such behavior would violate the terms of a consent decree that the Justice Department imposed as a condition of the merger of the two companies in 2010 — a deal that created a colossus in the live entertainment business and has long been criticized for giving the company too much power. | Such behavior would violate the terms of a consent decree that the Justice Department imposed as a condition of the merger of the two companies in 2010 — a deal that created a colossus in the live entertainment business and has long been criticized for giving the company too much power. |
| Under the proposed new agreement, the decree, which was set to expire in July, would be extended to the end of 2025, and Live Nation would pay the government’s legal fees, people close to the negotiations said. | Under the proposed new agreement, the decree, which was set to expire in July, would be extended to the end of 2025, and Live Nation would pay the government’s legal fees, people close to the negotiations said. |
| In a brief statement, Live Nation said: “We have reached an agreement in principle with the Department of Justice to extend and clarify the consent decree. We believe this is the best outcome for our business, clients and shareholders as we turn our focus to 2020 initiatives.” | In a brief statement, Live Nation said: “We have reached an agreement in principle with the Department of Justice to extend and clarify the consent decree. We believe this is the best outcome for our business, clients and shareholders as we turn our focus to 2020 initiatives.” |
| The decree will also be adjusted to clarify one of its most contested provisions — how Live Nation should conduct itself in the marketplace when it is selling its ticketing services and deciding where its artists should tour. | The decree will also be adjusted to clarify one of its most contested provisions — how Live Nation should conduct itself in the marketplace when it is selling its ticketing services and deciding where its artists should tour. |
| Under the existing agreement, Live Nation is forbidden from using the might of its concert-promotion division — which puts on tours by stars like Beyoncé and U2 — to coerce venues into signing contracts to use Ticketmaster, which holds the contracts at roughly 80 percent of major music venues. | Under the existing agreement, Live Nation is forbidden from using the might of its concert-promotion division — which puts on tours by stars like Beyoncé and U2 — to coerce venues into signing contracts to use Ticketmaster, which holds the contracts at roughly 80 percent of major music venues. |
| But the decree also allowed the company to “bundle” its services and gave Live Nation the right to exercise “its own business judgment” in how it made deals — terms that some antitrust experts believe made the decree ambiguous and difficult to enforce. | But the decree also allowed the company to “bundle” its services and gave Live Nation the right to exercise “its own business judgment” in how it made deals — terms that some antitrust experts believe made the decree ambiguous and difficult to enforce. |
| The revised decree would be designed to make clearer the restriction that Live Nation is not allowed to threaten venues in any way, and may not retaliate against venues that decide to use another ticket system instead of Ticketmaster. | The revised decree would be designed to make clearer the restriction that Live Nation is not allowed to threaten venues in any way, and may not retaliate against venues that decide to use another ticket system instead of Ticketmaster. |
| Live Nation has long denied violating the decree, saying that it had not threatened venues and faces a vigorous field of competitors in ticketing. But competitors had complained to the Justice Department about several incidents over the years in Louisville, Ky.; Oakland, Calif.; Los Angeles, and other cities, where it said Live Nation had used its power over concert tours by major stars to strong-arm venues into using Ticketmaster. | Live Nation has long denied violating the decree, saying that it had not threatened venues and faces a vigorous field of competitors in ticketing. But competitors had complained to the Justice Department about several incidents over the years in Louisville, Ky.; Oakland, Calif.; Los Angeles, and other cities, where it said Live Nation had used its power over concert tours by major stars to strong-arm venues into using Ticketmaster. |
| In the incident in Louisville, in 2014, managers of the KFC Yum! Center, a 22,000-seat arena, were considering replacing Ticketmaster with a system run by Live Nation’s biggest rival, AEG. But officials at AEG told The New York Times last year that they had received a warning from a Live Nation executive, saying the Louisville arena was likely to lose concerts if it dropped Ticketmaster. AEG said it had reported this to Justice investigators. | In the incident in Louisville, in 2014, managers of the KFC Yum! Center, a 22,000-seat arena, were considering replacing Ticketmaster with a system run by Live Nation’s biggest rival, AEG. But officials at AEG told The New York Times last year that they had received a warning from a Live Nation executive, saying the Louisville arena was likely to lose concerts if it dropped Ticketmaster. AEG said it had reported this to Justice investigators. |
| Live Nation disputed the account and supplied data showing that since 2012, the number of tours it has sent to the KFC Yum! Center has increased. | Live Nation disputed the account and supplied data showing that since 2012, the number of tours it has sent to the KFC Yum! Center has increased. |
| Justice Department officials were expected to provide their perspective on the tentative settlement later on Thursday. | Justice Department officials were expected to provide their perspective on the tentative settlement later on Thursday. |
| As concert ticket prices have skyrocketed in recent years, lawmakers and federal agencies have scrutinized the market, concerned about fairness toward consumers and toward competitors. Those efforts have intensified over the last few months. | As concert ticket prices have skyrocketed in recent years, lawmakers and federal agencies have scrutinized the market, concerned about fairness toward consumers and toward competitors. Those efforts have intensified over the last few months. |
| In August, Senators Richard Blumenthal of Connecticut and Amy Klobuchar of Minnesota asked Makan Delrahim, the assistant attorney general for the antitrust division of the Justice Department, to investigate the state of competition in ticketing, pointing specifically to Live Nation and asking that the decree be extended. In their request, they cited an investigation by The Times last year that discussed the incidents in Louisville and other cities and reported how some Live Nation’s competitors had complained to the government about its business practices, saying it had effectively stifled competition. | In August, Senators Richard Blumenthal of Connecticut and Amy Klobuchar of Minnesota asked Makan Delrahim, the assistant attorney general for the antitrust division of the Justice Department, to investigate the state of competition in ticketing, pointing specifically to Live Nation and asking that the decree be extended. In their request, they cited an investigation by The Times last year that discussed the incidents in Louisville and other cities and reported how some Live Nation’s competitors had complained to the government about its business practices, saying it had effectively stifled competition. |
| This month, members of the House Judiciary subcommittee on antitrust wrote to Mr. Delrahim with similar concerns, asking to “take all necessary action to protect consumers and enhance competition.” | This month, members of the House Judiciary subcommittee on antitrust wrote to Mr. Delrahim with similar concerns, asking to “take all necessary action to protect consumers and enhance competition.” |
| A Justice Department official, who asked not to be named because of the sensitive nature of the investigation, said Mr. Delrahim had become similarly concerned that the merger had harmed rivals, led to higher ticket prices for events and hampered innovation. | A Justice Department official, who asked not to be named because of the sensitive nature of the investigation, said Mr. Delrahim had become similarly concerned that the merger had harmed rivals, led to higher ticket prices for events and hampered innovation. |
| Justice officials in the Trump era have been unusually aggressive toward mergers of companies who are not direct competitors, but operate in adjacent business lines, as Live Nation and Ticketmaster once did. For decades, such deals, known as vertical mergers, had been largely approved by the Justice Department because it is difficult to prove a reduction in competition or harms to consumers with such mergers. | Justice officials in the Trump era have been unusually aggressive toward mergers of companies who are not direct competitors, but operate in adjacent business lines, as Live Nation and Ticketmaster once did. For decades, such deals, known as vertical mergers, had been largely approved by the Justice Department because it is difficult to prove a reduction in competition or harms to consumers with such mergers. |
| But Mr. Delrahim shocked corporate America in 2017 by moving to block AT&T’s merger with Time Warner, the first major challenge of a vertical merger in three decades. The government later lost the case in court. | But Mr. Delrahim shocked corporate America in 2017 by moving to block AT&T’s merger with Time Warner, the first major challenge of a vertical merger in three decades. The government later lost the case in court. |
| There has been a recent swell of concern by lawmakers and antitrust enforcers over corporate consolidation in the technology industry. In June, the Federal Trade Commission and Department of Justice confirmed reports of broad investigations into the abuse of monopoly power by the big tech companies Google, Facebook, Amazon and Apple. Earlier this month, Attorney General William P. Barr signaled the antitrust investigations of tech platforms had broadened to include privacy abuses and hosting illegal content online. | There has been a recent swell of concern by lawmakers and antitrust enforcers over corporate consolidation in the technology industry. In June, the Federal Trade Commission and Department of Justice confirmed reports of broad investigations into the abuse of monopoly power by the big tech companies Google, Facebook, Amazon and Apple. Earlier this month, Attorney General William P. Barr signaled the antitrust investigations of tech platforms had broadened to include privacy abuses and hosting illegal content online. |