U.S. suing Ticketmaster owner Live Nation
The U.S. Justice Department (DOJ) and a group of 30 states and the District of Columbia on Thursday sued to break up Live Nation, arguing the big concert promoter and its Ticketmaster unit illegally inflated concert ticket prices and hurt artists.
“It is time to break up Live Nation,” said U.S. Attorney General Merrick Garland.
Concert fans and politicians for years have been calling for a re-examination of Live Nation’s purchase of Ticketmaster in 2010, especially after the ticket seller in 2022 botched sales to Taylor Swift’s first concert tour in years, sending fans into hours-long online queues, charging prices that customers said were too high and drawing charges of poor service.
The debacle prompted congressional hearings and bills in state legislatures aimed at better protecting consumers.
Thursday’s legal action underscores the aggressive approach U.S. President Joe Biden’s antitrust enforcers have adopted as they seek to create more competition in a wide range of industries, from Big Tech to health care to groceries.
“Live Nation relies on unlawful, anticompetitive conduct to exercise its monopolistic control over the live events industry in the United States at the cost of fans, artists, smaller promoters and venue operators,” Garland said. He went on to say that as a result fans pay more in fees, artists have fewer opportunities to perform and smaller promoters get squeezed out.
Shares of Live Nation were trading down 5.8 per cent.
‘Vast scope’ of influence and control
The suit says Live Nation directly manages more than 400 musical artists and controls around 60 per cent of concert promotions at major venues. It owns or controls more than 265 concert venues in North America, and through Ticketmaster controls roughly 80 per cent or more of big venues’ primary ticketing for concerts.
In the lawsuit, filed in the Southern District of New York, the DOJ argued the “vast scope” of Live Nation and Ticketmaster allowed them to “insert themselves at the centre and the edges of virtually every aspect of the live music ecosystem.”
The Justice Department accuses Live Nation of a slew of practices that allow it to maintain a stronghold over the live music scene, including using long-term contracts to keep venues from choosing rival ticketers, blocking venues from using multiple ticket sellers and threatening venues that they could lose money and fans if they don’t choose Ticketmaster.
The Justice Department says Live Nation also threatened to retaliate against one firm if it didn’t stop a subsidiary from competing for artist promotion contracts.
U.S. Attorney General Merrick Garland, speaking after the Department of Justice launched a lawsuit against Live Nation and Ticketmaster, is alleging Live Nation has ‘illegally monopolized markets across the live concert industry in the United States for far too long.’
Live Nation called the suit a possible “PR win for the DOJ in the short term,” but said the entertainment company would prevail in court. The lawsuit “won’t solve the issues fans care about relating to ticket prices, service fees and access to in-demand shows.”
“There is more competition than ever in the live events market,” it added.
Democratic Sen. Amy Klobuchar welcomed the suit in an interview on MSNBC on Thursday, but said Congress still needs to take additional action “to put the fans first” by increasing ticketing sales and blocking bots from buying blocs of tickets.
“There’s just no rules for the road here,” Klobuchar said.
Canada also approved 2010 merger
In 2010, the U.S. Justice Department approved Ticketmaster’s controversial merger with Live Nation, with conditions intended to stop the combined company from harming competition, including that Live Nation agree not to retaliate against concert venues for using other ticket companies for 10 years. Canada’s Competition Bureau also approved the merger.
In 2019, the DOJ investigated and found that Live Nation had “repeatedly” violated that agreement and extended the prohibition on retaliating against concert venues to 2025. That same year, Canada’s Competition Bureau ordered Ticketmaster to pay a penalty of $4.5 million Cdn for misleading customers on online ticket sales, but also ruled the company’s practice of recruiting scalpers to secretly purchase and resell Ticketmaster tickets for inflated costs was legal.
In 2020, a court extended most of the DOJ’s oversight of the merger to 2025 because, the department said, Ticketmaster retaliated against stadiums and arenas that opted to use other ticketing companies.
Live Nation has said in the past that it was confident its business practices were legal, and that the probe had been prompted by complaints from rivals, including resellers.
When it was reported that the company was under federal investigation in 2022, the concert promoter said in a statement that Ticketmaster enjoys such a large share of the market because of “the large gap that exists between the quality of the Ticketmaster system and the next best primary ticketing system.”
But competitor ticket sellers have long complained that Live Nation makes it difficult for them to disrupt the market with practices such as withholding acts if those venues don’t agree to use Ticketmaster’s service.
Canada’s recent federal budget document mentions high ticket prices at concerts and sporting events, and says the federal government will work with provinces and territories to adopt best practices that reduce unexpected charges and crack down on fraudulent sellers, but does not offer any plan to introduce enforceable measures.
Published at Thu, 23 May 2024 15:20:16 +0000
China stages ‘punishment’ drills in Taiwanese president’s 1st week on the job
A furious China launched “punishment” drills around Taiwan on Thursday in what it said was a response to “separatist acts,” sending up heavily armed warplanes and staging mock attacks as state media denounced newly inaugurated President Lai Ching-te.
The exercises, in the Taiwan Strait and around groups of Taiwan-controlled islands beside the Chinese coast, come just three days after Lai took office, a man Beijing detests as a “separatist.”
China, which views democratically governed Taiwan as its own territory, denounced Lai’s inauguration speech on Monday, in which he urged it to stop its threats, saying the two sides of the strait were “not subordinate to each other.”
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On Tuesday, Chinese Foreign Minister Wang Yi called Lai “disgraceful.”
Lai has repeatedly offered talks with China but has been rebuffed. He says only Taiwan’s people can decide their future, and rejects Beijing’s sovereignty claims.
The Eastern Theatre Command of the Chinese People’s Liberation Army (PLA) said it had started joint military drills, involving the army, navy, air force and rocket force, in areas around Taiwan at 7:45 a.m. local time.
The drills are being held in the Taiwan Strait, the north, south and east of Taiwan, as well as areas around the Taiwan-controlled islands of Kinmen, Matsu, Wuqiu and Dongyin, the command said in a statement, the first time China’s exercises have included areas around these islands.
Condemnation across political spectrum
Taiwan’s defence ministry said 15 Chinese navy ships, 16 coast guard and 33 aircraft were involved, but no live fire drills were held in any areas close to Taiwan.
The drills, dubbed “Joint Sword – 2024A,” are set to run for two days. However, unlike a similar “Joint Sword” exercise in April last year, these drills are tagged “A,” opening the door to potential followups.
“This is also a strong punishment for the separatist acts of Taiwan independence forces and a stern warning against the interference and provocation by external forces,” the Chinese military said.
Taiwan’s defence ministry condemned the drills, saying that it had sent forces to areas around the island, with its air defences and land-based missile forces tracking targets, and that it was confident it could protect its territory.
“This pretext for conducting military exercises not only does not contribute to peace and stability across the Taiwan Strait, but also shows its hegemonic nature at heart,” the ministry’s statement said.
Taiwan’s presidential office expressed regret that China was threatening the island’s democratic freedoms and regional peace and stability with its “unilateral military provocations,” but said Taiwan could ensure its security.
“I have confidence in the military,” Lai said at a military base in Taoyuan, near Taipei, the capital. “I also ask all my compatriots to rest assured.”
The main opposition Nationalist Party, which is generally seen as pro-China, also condemned Beijing’s actions. The Nationalists, also known as the KMT, called on “the opposite side of the [Taiwan Strait] to exercise restraint, cease unnecessary manoeuvres, avoid a conflict in the Taiwan Strait and maintain … peace and development between the sides.”
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Recent surge in drills
China’s state broadcaster CCTV said Lai’s inauguration speech was “extremely harmful” and China’s countermeasures are “legitimate, legal and necessary.”
Lai’s speech was a confession of a desire for Taiwan independence and undermined peace and stability across the strait, it said.
Taiwan’s future can only be decided by China’s 1.4 billion people, not just Taiwan’s 23 million people, it said.
Over the past four years, China’s military has carried out almost daily activities near Taiwan, and last staged large-scale war games near the island in 2023 and 2022.
In August 2022, China launched live-fire military exercises after a visit to Taiwan from former U.S. House speaker Nancy Pelosi, which was condemned by Beijing. That series of exercises, the scale of which was unprecedented, ran for four days, followed by several days of additional drills.
Published at Thu, 23 May 2024 13:11:29 +0000
