Beverly Hills-based ticketing giant Live Nation Entertainment Inc. has reached a tentative settlement with the Justice Department over its much-drawn-out antitrust lawsuit.
That decision comes within the first week of the federal trial, in which the company faced accusations of monopolizing the ticketing market and forcing venues to work exclusively with itself and its subsidiary Ticketmaster.
Live Nation settled last Monday to cap its service fees at 15% of face value and ease the reins on venues to work with rivals. The settlement agreement also allows the multi-pronged company to avoid spinning off Ticketmaster, which it acquired in 2010.
“By giving artists greater flexibility in choosing their promotional partners and ticketing strategy while also keeping the cost of a concert more affordable for fans, we are putting more power where it should be – with artists and fans,” said Michael Rapino, Live Nation’s chief executive, in a statement. “We have never relied on exclusivity to drive our ticketing business, it has simply been the result of having the best products, services and people in the industry.”
Live Nation’s stock climbed after the news broke about the settlement, rising to $167.56 Monday, a 3.3% increase from open. The company allocated $280 million to fund the damages claims from the plaintiffs, which comprise over 30 U.S. states in addition to the Justice department.
Not a ‘fair deal’
The settlement faced backlash from plaintiffs, many of whom indicated that they’ve been shortchanged and would continue their battle.
California Attorney General Rob Bonta said in a statement that the Golden State will “continue this fight” with a bipartisan group of attorneys general, including New York’s Letitia James. Many of the attorneys general said they were given only a day to decide if they would hop onboard the settlement, with Federal judge Arun Subramanian calling Omar Assefi, head of the Justice department’s antitrust division, and Rapino into court Tuesday to answer questions about the deal, per CNN.
Other politicians have turned to question the transparency of the settlement. Sen. Cory Booker, D-New Jersey, ranking member of the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights, called the settlement a “weak deal.” He also called the accompanying $280 million fee “a slap on the wrist” for Live Nation, who earned more than over $25 billion in revenue last year.
“Live Nation uses dynamic pricing, excessive fees, and exclusivity deals to pad its profits while consumers have little choice but to pay up if they want to see their favorite artists,” Booker said in a statement. “It’s obvious the Administration did not get a fair deal for American consumers.”
