The US Justice Department is preparing to take legal action against Live Nation Entertainment on allegations the concert promoter has sought to strong-arm concert venues into using its dominant Ticketmaster subsidiary, reported The Wall Street Journal.
The Department believes the concert promoter’s conduct has violated the merger settlement Live Nation and Ticketmaster reached with the government in 2010 and plans to file a decree enforcement action, the source said.
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.
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.
The Live Nation-Ticketmaster merger consolidated two of the most powerful forces in the music industry. Ticketmaster holds an estimated 80% of its market, according to people in the concert industry. As the world’s largest concert promoter, Live Nation organizes live music events by booking talent, securing venues, setting ticket prices, and marketing shows. It has also built a robust artist-management business.
