The U.S. Department of Justice is examining whether concert promoter Live Nation, which owns Ticketmaster, "should be allowed to buy a competing ticketing company called Rival and take over the startup's contract with billionaire Stan Kroenke," according to Dave Brooks of BILLBOARD. Sources said that attorneys for Live Nation President & CEO Michael Rapino notified the DOJ last month that the company was "looking into buying Rival." The sources said that the DOJ is now "reviewing that potential deal as part of its larger probe into Live Nation's compliance with a consent decree governing its decade-old merger with Ticketmaster." Attorneys working with the DOJ have "warned Live Nation they might block it from buying Rival and gaining access to Rival's lucrative ticketing contract" with Kroenke Sports & Entertainment. Sources said that DOJ lawyers earlier this month "warned Live Nation they may sue the company for violating" its '10 consent decree "amid increased complaints about Ticketmaster's efforts to exert greater control over the secondary ticket market." Ticketmaster has been "providing ticketing services for Kroenke's venues" since late July, when Kroenke's contract with AEG's ticketing arm AXS expired. Sources said that the DOJ now is "investigating accusations that Live Nation threatened to withhold concerts and tours from Kroenke's venues unless Ticketmaster was given the ticketing contract" (BILLBOARD.com, 12/15).
HISTORY OF COMPLAINTS: The WALL STREET JOURNAL's Kendall & Steele noted venues typically "enter long-term contracts giving a ticketing provider the exclusive right to sell tickets to any event they host." Over the years, Live Nation's competitors have "accused it of using its market power as a concert promoter and artist manager to coerce venues into using Ticketmaster or risk losing out on lucrative bookings." Sources said that while in theory, advances in new technology have "made it easier for other ticketing companies to challenge Ticketmaster, in practice few venues have defected from their longstanding contracts with the giant." Almost 10 years "since the decree was put in place, Ticketmaster has no serious competitor" (WALL STREET JOURNAL, 12/14).
