A group of US Senators has asked regulators to look into breaking up Live Nation after the recent debacle with sales for Taylor Swift’s Eras Tour (Picture: AFP)
A group of lawmakers has asked the Justice Department to look into breaking up Live Nation Entertainment after the recently botched sale of concert tickets for Taylor Swift’s Eras arena tour.
Senators Richard Blumenthal of Connecticut, Amy Klobuchar of Minnesota, and Ed Markey of Massachusetts published a letter addressed to Attorney General Merrick Garland asking his office to take action if an investigation into the company reveals ‘anticompetitive behavior.’
‘An investigation alone does nothing for the stakeholders already harmed by Live Nation’s market dominance,’ the Senators stated.
In 2009, events promoter Live Nation and ticket sales broker Ticketmaster announced a merger in a massive $2.5billion deal. Although the controversial move was widely criticized by artists and fans, the Justice Department approved the deal in 2010.
Ticket prices have more than tripled in the last 20 years, a report found (Picture: Getty Images)
Over a decade after the merger, Live Nation Entertainment now controls massive amounts of the live entertainment market, including 60% of promotion for concerts and ’80 to 100% of the top 100 arenas in the country,’ the senators stated, citing a 2018 report published in the New York Times.
Average ticket prices have also more than tripled in the last 20 years, the US Government Accountability Office found. On average, 27% of ticket prices go to unrelated fees.
The increased scrutiny over the company’s business practices comes after last week’s aborted sale for Taylor Swift’s Eras tour.
After millions of fans joined a presale queue and shattered industry records, Live Nation abruptly cancelled Friday’s scheduled general sale ‘extraordinary high demand’ and ‘insufficient inventory.’
‘The Eras Tour has been cancelled,’ Ticketmaster tweeted.
The senators cited this debacle as an example of Live Nation’s ‘high prices and labyrinth-like ticketing process,’ which consumers have no choice but to use due to a lack of alternatives.
The group of legislators asked the Justice Department to consider breaking up the deal after the current investigation. ‘This may be the only way to truly protect consumers, artists, and venue operators and to restore competition in the ticketing market.’
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‘An investigation alone does nothing for the stakeholders already harmed by Live Nation’s market dominance,’ the Senators stated.
