Live Nation Entertainment Inc., the world's largest live entertainment organization and owner of Ticketmaster, is in the late stages of a Department of Justice (DOJ) investigation into its business practices. The company's President and CFO, Joe Berchtold, recently provided an update on the situation, revealing that the company is open to compromise and is in ongoing discussions with senior DOJ leadership.
The DOJ's investigation, which has been ongoing for two and a half years, is reportedly focused on Ticketmaster's exclusive venue contracts for its ticketing services. These contracts have drawn scrutiny for granting Ticketmaster a dominant position in the market, particularly in the top 100 highest-grossing theaters, arenas, and stadiums in North America.
Berchtold, however, has previously stated that he does not believe the focus of the investigation is on the merger of Live Nation and Ticketmaster, which gave the company both ticketing and promotion services. Instead, he suggests the investigation is centered on discrete business practices.
The DOJ is also expected to argue that Live Nation has abused its power in the concert business to drive up ticket prices over the last decade. Additional fees, which can add as much as 30% to ticket prices, have been a point of contention.
The impending lawsuit comes on the heels of a Senate hearing in January 2023, concerning Live Nation’s business practices in light of the trouble with the sale of tickets to Taylor Swift’s tour. During the hearing, Senator Amy Klobuchar (D-Minn.) and venue owners alleged that Live Nation had been threatening venues by pulling bookings if they did not choose Ticketmaster as the ticket provider.
Live Nation has defended its practices, with Berchtold stating that many venues want one ticketing service for ease of use and auction off the exclusivity rights to maximize their value. He also noted that most contracts are three to five years in length, but some venues elect for longer exclusive contracts in order to get bigger advances to help fund their capital requirements.
Despite the ongoing investigation and potential lawsuit, Berchtold remains optimistic, stating, “We’re looking forward to our upcoming meeting with the division leadership and remain hopeful that we can amicably resolve any remaining disputes. But if not, we’re prepared to defend ourselves in court.”
More for you:
- Live Nation In Late Stages of DOJ Investigation, Open to Compromise
- DOJ Expected To Sue Ticketmaster
- Ticketmaster’s Cruel Summer - the potential implications of a DOJ lawsuit against the ticketing platform and why concert fans may not be out of the woods yet. - Ifrah Law
- Live Nation’s Bid to Avoid US Antitrust Suit Seen as Likely to Fail
