The letter refers to a 2018 Government Accountability Office report that concluded that Live Nation controls more than 80% of the US ticket sales market. It adds that the Department of Justice has found that the promoter has repeatedly violated the terms of the agreement over the past 10 years by threatening locations and mandating the bundling of artists with ticket sales services. In 2019, Live Nation reached a settlement with the DOJ’s antitrust division extend the 2010 consent decision regarding the merger of Ticketmaster and Live Nation until 2025 and clarification of rules regarding threats and retaliation against venues that do not sign with the ticket giant.
We believe that the previous government’s decision to extend the consent decision in 2019 until 2025 was insufficient to protect consumers, ”reads Monday’s letter. “In its decision, DOJ has not shown why extension of the consent decree would occur with only minor amendments [Live Nation] of continued anti-competitive behavior. Rather than redouble a failed approach, DOJ must now take the necessary steps to restore competition in the ticket sales market. “
Live Nation has declined to comment on the representatives’ letter.
The letter comes at a time when conglomerates like Live Nation’s general attitude to deep-seated economic power is shifting, and Biden has indicated he may be taking a tougher stance on monopolistic behavior. In March, Biden announced his intention to appoint an antitrust scientist Lina Khan Commissioner of the Federal Trade Commission, whose theories of more aggressive antitrust enforcement have won academics, and appointed major tech critic Team Wu to its National Economic Council to focus on technology and competition in the National Economic Council. Sen. Amy Klobuchar (D-MN), a Live Nation vocal critic, is also releasing a book on antitrust in America later this month called Antitrust: Taking Monopoly Power from the Gilded Age to the Digital Age
A major concern for members of Congress is Live Nation’s growing control over the secondary market. The letter emphasizes the use of it by the company SafeTix technology that prohibits the release and transfer of tickets outside the Ticketmaster platform, effectively excluding other secondary ticketing platforms SafeTix gives Ticketmaster a big advantage as it gives the company control over the entire life of the ticket, from sale to show night, with a digital ledger every time the ticket is sold or transferred, along with the identity of everyone participating in the transaction . SafeTix‘s non-transferability option was first used in 2019 at a Black Keys concert at the Wiltern in Los Angelesson that saw hundreds of fans buying resale tickets shut out through StubHub or Vivid Seats of the show. Ticketmaster SafeTix technology has since been used for several other events, including NFL games and Madonna’s Madame X tour without of big trouble.
The SafeTix technology aims to prevent fraud by creating unique barcodes that refresh and prevent resellers of selling the same ticket to multiple consumers. It is also on not to Ticketmaster when the non-transferable function is used. The ticketer provides that opportunity for artists and promoters to implement as they see fit.
The Congressmen go on to say they believe Live Nation will use technology such as SafeTix to make entry safer during and after the pandemic, while also fascinating concertgoers Register an account with Ticketmaster. The first part could be a good thing, but it comes at a cost. “While local governments should work with local venues to ensure that fans protect their sanity, such as wearing a mask and socializing,” says the letter, “we cannot allow Ticketmaster to use the pandemic to stifle competition by eliminating ticket transfers. “
Ticketmaster Chairman Mark Yovich says Ticketmaster’s technology SafeTix and Presence can be used to assist stages and performers return to concerts with the “ability to explore integrations to enable contact finding where needed” and enable social distancing with an algorithm that can measure. It also gives performers more control over itir tickets instead of relinquishing them on the secondary market.
Now that touring returns, demand for tickets is on the rise, as seen at Bad Bunny is The Last Tour del Mundo tour die Sold out in record time According to Billboard reporting, the tour has also seen the highest ticket market in history, with secondary sites selling tickets for more than 10 times their face value.
Read the full letter here:
Dear Attorney General Garland and Acting Chairman Slaughter:
We are writing in support of strong antitrust enforcement by the Biden administration, including the live event ticket sales marketplace. The evidence is overwhelming that the 2010 merger between the world’s largest concert promoter, Live Nation, and the largest ticket provider, Ticketmaster, strangled competition in live entertainment tickets and harmed consumers and must be rethought.
According to the 2018 Government Accountability Office (GAO) report, Live Nation Entertainment (LNE) has more than 80 percent of the ticket sales market. The Federal Trade Commission (FTC) held an important workshop in 2019 that examined the ticket industry and raised concerns from across the industry about LNE’s anti-competitive behavior. These important federal reviews, combined with troubling media reports and state-sponsored reports, show that more can be done to investigate potentially unfair, deceptive and anti-competitive practices in the ticket industry.
Since the merger, we’ve seen how the pitfalls of the Department of Justice (DOJ) consent decision have failed to protect competition and consumers. The DOJ itself has found that LNE has repeatedly violated the terms of the agreement over the past 10 years by threatening venues and forcing the bundling of artists with ticket sales services. These practices have allowed Ticketmaster to maintain control of more than 80 percent of the primary ticket market and expand its position in the secondary market. We believe that the previous government’s decision to extend the consent decision in 2019 until 2025 was insufficient to protect consumers. In its decision, DOJ has not demonstrated why extending the consent decision with only minor amendments would prevent LNE from continuing anti-competitive behavior. Rather than redouble a failed approach, DOJ must now take steps necessary to restore competition in the ticket marketplace.
Not satisfied with its near monopoly on primary ticket sales, LNE has tightened its grip on the secondary market, making it one of the largest ticket resellers in the United States. The company is now leveraging its position in the primary channel to drive out competition in the resale market and allow for potentially unfair and deceptive practices.
A recent example that we are concerned about is the introduction of a smartphone ticket product, known as “SafeTix”, allegedly created to combat fraud. However, LNE uses this program to ensure that tickets can only be resold or gifted within the Ticketmaster system. Ticketmaster has also used “SafeTix” to cancel resold tickets minutes before the show starts. Media reports say that customers who bought tickets on a competing resale platform were literally left on the street while the show went on without them. Where true, these reports may support claims of unfair and deceptive practices by LNE.
During the 2019 coronavirus disease (COVID-19) pandemic, LNE rebranded its anti-competitive methods under the guise of protecting public health. As reported in Billboard Magazine, “Ticket transfer technology used to dissuade fans from reselling tickets to in-demand shows will now be used to make ‘safer entry’ by requiring most people[s] enter a concert venue to register an account with Ticketmaster. “[1] While local governments should work with local venues to ensure that fans protect common sense from public health, such as wearing masks and social distancing, we cannot allow Ticketmaster to use the pandemic to stifle competition through ticket transfers to eliminate.
While the pandemic unfortunately continues to prevent a return to crowded locations, there is hope that the live events will resume. Indeed, the governors of New York and New Jersey recently announced that they will ease restrictions on live events at major venues. When live events do return, it is imperative that consumers have access to a market that is transparent, fair and competitive. We know that LNE is not sitting still during this break. Your agencies must be careful not to let one company dictate terms for the return of live events and cannot allow LNE to mask its anti-competitive instincts under the guise of public health.
We strongly urge the DOJ and the FTC to protect future consumer access to live events by promptly opening an investigation into LNE’s potentially unfair, deceptive and anti-competitive practices.