WASHINGTON, Fla. — The U.S. Department of Justice is proposing a sweeping plan that could force major changes to Live Nation and Ticketmaster, including divestitures, limits on exclusive contracts and new ticketing requirements.
The proposal was filed in the federal antitrust case against Live Nation Entertainment Inc. and Ticketmaster LLC.
The Justice Department and several states, including Florida, accused the companies of violating federal antitrust law through anticompetitive conduct in ticketing, concert promotions and amphitheater markets.
Under the proposed final judgment, Live Nation and Ticketmaster would be required to develop technology allowing major concert venues that use Ticketmaster’s back-end software to sell and distribute primary tickets through third-party marketplaces.
The proposal would also loosen exclusivity provisions in existing primary ticketing contracts and create new restrictions on exclusive contracts going forward.
Live Nation would also have to allow promoters and artists to use alternative ticket sellers at company amphitheaters, cap ticket service fees at those amphitheaters and divest control over certain amphitheaters.
The proposed judgment would also require Live Nation to allow artists who choose to work with other promoters to perform at company amphitheaters.
The companies would also be required to waive exclusive and preferred booking rights at major concert venues, maintain firewalls limiting information shared between Ticketmaster and Live Nation and end their ticketing agreement with Oak View Group.
Federal officials said the proposal would also require the companies to share certain data with artists and notify the United States of certain future acquisitions.
The Justice Department’s complaint alleges Live Nation and Ticketmaster used their power across concert promotions, ticketing, venues and artist management to limit competition and raise costs for fans.
The complaint says Live Nation directly manages more than 400 musical artists, controls around 60% of concert promotions at major concert venues and owns or controls more than 265 concert venues in North America. It also says Ticketmaster controls roughly 80% or more of major concert venues’ primary ticketing for concerts.
The filing says the public will have 60 days to comment on the proposal.
After the comment period, a judge will decide whether the proposed final judgment is in the public interest.
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