The US National Independent Venue Association has urged American music fans and music industry professionals to submit comments on the US Department Of Justice’s antitrust settlement with Live Nation. The public has until 4 Sep to comment on the live music giant’s DoJ deal before Judge Arun Subramanian has to decide if the proposed arrangement is in the public interest.
NIVA says that US competition law requires that the public be allowed to comment on deals of this kind because “Congress did not want antitrust settlements decided quietly between a monopolist and the Justice Department - like this one was”.
The consultation period exists, NIVA adds, so that “the people who live with the consequences” of a company’s anticompetitive conduct, can “put those consequences on the record in front of the judge who decides whether the settlement is actually in the public interest”.
Live Nation’s critics, including NIVA, have been critical of the Washington lobbying shenanigans that they believe resulted in the DoJ settlement deal. Though not everything that happens in Washington is bad for live music. While critical of the federal government’s recent conduct, NIVA has also welcomed new ticket touting rules being introduced by local lawmakers in the US capital.
The DC Council, which passes laws that apply within the city of Washington DC, has just passed The RESALE Act, which puts a 10% price cap on touted tickets sold in the capital, plus bans speculative ticket listings on touting sites, forces full pricing transparency and requires commercial touts to register with the city authorities.
The local music industry has also welcomed the new touting rules, with Catherine Ferrando, co-owner of the Black Cat venue, saying she is “excited to see DC become one of the first places in the nation where bands can set concert prices with confidence and fans will be free from price gouging”.
NIVA’s position on the Live Nation deal
In calling on music fans and music professionals to comment on the Live Nation DoJ deal, NIVA has also set out why it thinks that arrangement fails to address the issues caused by the market dominance of Live Nation and its Ticketmaster subsidiary.
While the DoJ ultimately settled its antitrust lawsuit against Live Nation, 33 US states proceeded with their legal action, resulting in a jury ruling that Live Nation and Ticketmaster operate an illegal monopoly.
The DoJ’s proposed settlement, says NIVA Executive Director Stephen Parker, basically “asks a federal judge to let that monopoly remain virtually intact”.
Because, while Live Nation has agreed to make some changes to its policies and operations under the deal, there won’t be any major structural changes at the live music company, which will continue to be very active in tour promotions, venue management, artist management and ticketing.
“With this proposed settlement, Live Nation keeps Ticketmaster”, Parker says, “It keeps its artist management business. It keeps its festivals. It keeps its clubs and theatres. It keeps the power to package a tour, route that tour into buildings it controls and sell every ticket to it. Those capabilities are central to the operational structure the jury found illegal and this settlement does not address them”.
The DoJ originally wanted Live Nation to be forced to sell Ticketmaster, basically undoing the 2010 merger that brought the two companies together. That’s something the 33 US states are still pushing for. However, Parker claims, the DoJ ultimately “sold out to Live Nation one week into a trial”.
It’s widely believed that the decision to do that deal - against the wishes of the DoJ's own antitrust team - was heavily influenced by lobbying of both the Justice Department and the White House by various Donald Trump allies hired by Live Nation.
Which is why NIVA and other Live Nation critics believe the deal is not in the public interest and want as many people as possible to make that case to Judge Subramanian.
“Independent venues, promoters and festivals” have all been “living with the consequences” of the Live Nation/Ticketmaster merger for fifteen years, Parker says, before adding, “artists have, fans have”. But now, he concludes, there is “a formal opportunity to ensure each voice harmed by Live Nation is heard. We hope that as many as possible will use their voice”.