The
The complaint filed in federal court alleges that Live Nation-Ticketmaster violated Section 2 of the Sherman Act by unlawfully exercising its monopoly power. Additionally, Live Nation-Ticketmaster is accused of leveraging its power over artists, venues, and independent promoters in ways that harm competition and impede the entry and expansion of competitors in the market.
According to the complaint, Live Nation-Ticketmaster has maintained its monopoly in various concert promotions and primary ticketing markets unlawfully and engaged in other exclusionary practices affecting live concert venues such as arenas and amphitheaters. The complaint also alleges that Live Nation-Ticketmaster's exclusionary practices reinforce and protect what the company refers to as its "wheel" - a self-reinforcing cycle wherein Live Nation-Ticketmaster profits from concertgoers and sponsorships, uses this revenue to tie artists into exclusive promotion deals, and then leverages its strong portfolio of live content to secure long-term exclusive ticketing agreements with venues.
The DOJ argues that Live Nation-Ticketmaster's anticompetitive behaviors further hinder competitors from competing on merit. The DOJ alleges that Live Nation-Ticketmaster has employed various tactics to eliminate competition and monopolize markets.
- Relationship with
- Retaliation Against Potential Entrants: Live Nation-Ticketmaster has threatened financial retaliation to prevent a company's subsidiary from establishing itself in the
U.S. concert promotion market. - Threats and Retaliation Against Venues Working with Competitors: Live Nation-Ticketmaster's power in concert promotion means that every live concert venue knows that selecting a different promoter or ticketing entity carries the risk of negative reactions from Live Nation-Ticketmaster, potentially resulting in lost concerts, revenues, and fans.
Exclusionary Contracts Hindering Competition : Live Nation-Ticketmaster locks in concert venues with long-term exclusive contracts, preventing venues from considering rival ticketing firms or choosing better or more cost-effective ticketing technology. These contracts reduce the competitive pressure on Live Nation-Ticketmaster to improve its own ticketing technology and customer service.- Preventing Venues from Using Multiple Ticketing Firms: Live Nation-Ticketmaster's behavior and exclusive contracts prevent new and different promotional and ticketing rivals and business models from emerging. It prevents venues from using multiple ticketing entities to compete by offering fans the best mix of price, fee, quality, and innovation.
- Restricting Artists' Access to Venues: Live Nation-Ticketmaster increasingly takes control of key venues, including amphitheaters. Live Nation-Ticketmaster requires artists to agree to use these venues, conditioned on these artists also using promotional services.
- Acquiring Competitors and Competitive Threats: Live Nation-Ticketmaster has strategically acquired a range of small and regional promoters that it internally identifies as threats. This consolidation weakens competition and affects artists' compensation.
According to the complaint, Live Nation-Ticketmaster has unlawfully maintained its monopoly in various concert promotions and primary ticketing markets and engaged in other exclusionary practices affecting live concert venues such as arenas and amphitheaters.
(DOJ - 23.05.2024)
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