U.S. Justice Department Preparing to Take Action Against Live Nation, According to WSJ
Monday, December 16, 2019
The Wall Street Journal is reporting that the United States Justice Department is "preparing to take legal action against Live Nation Entertainment on allegations the company has sought to strong-arm concert venues into using its Ticketmaster subsidiary," according to people familiar with the matter.
Ticketmaster is used at local venues including the Dunkin’ Donuts Center in Providence.
In 2018, it cost an average of $94.31 to see an artist live in concert. This marks nearly an 11 percent increase from 2017 when a concert ticket cost just under $85, reports Statista.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTTicketmaster and LiveNation merged in 2010. At the time, the Justice Department approved the merger with a number of conditions and now regulators believe the company has violated the conditions.
Post-Merger Concerns
According to the WSJ, “As ticket prices have risen, critics have questioned whether the settlement has worked as intended. It is due to expire next year, but the Justice Department now plans to ask a judge to extend the restrictions by several years and prevent the alleged coercive conduct by Live Nation, the people said.”
The company announced last year in its earning reports, “As a result of this strong demand growth, in 2018 we delivered double-digit attendance growth across our arenas, amphitheaters and theaters & clubs. Live Nation continued to grow its global market share in 2018, adding nearly seven million fans globally for a total of 93 million fans, driving concerts revenue up 11%, operating income up 61%, and AOI up 22%.”
“Live Nation’s chief executive has publicly denied that the company has violated its agreement. The company and the Justice Department have engaged in talks but haven’t settled their differences, people familiar with the matter said,” reports the WSJ
An email inquiry to the Dunkin’ Donuts Center’s Larry Lepore was not responded to at the time of publishing.
This story was first published 12/15/19 5:16 PM.
