Since Live Nation‘s acquisition of Ticketmaster dating back to 2010, they reached a settlement a few days ago with the U.S. Department of Justice. When it comes to it, they reached an agreement in principle, and it holds practical implications onto the company’s practices. The settlement with the DOJ’s Antitrust Division extended the 2010 consent decree on their merger with Ticketmaster to 2025. Following, Live Nation issued a statement.
“We have reached an agreement in principle with the Department of Justice to extend and clarify the consent decree. We believe this is the best outcome for our business, clients and shareholders as we turn our focus to 2020 initiatives.”
Soon-after the settlement’s agreement in principle, Live Nation’s stock shot up by 10% which gradually increased from there. After dipping on December 12, it’s currently at its highest late August. Alongside Live Nation’s statement, the assistant attorney general of the Justice Department’s Antitrust Division, Makan Delrahim, issued his own.
“When Live Nation and Ticketmaster merged in 2010, the Department of Justice and the federal court imposed conditions on the company in order to preserve and promote ticketing competition. Merging parties will be held to their promises and the Department will not tolerate transgressions that hurt the American consumer.”
Encompassing, the agreement should put a halt to practices. For example, they can no longer threaten to retaliate against venues which refuse to work with Ticketmaster. Furthermore, they can’t indicate that Ticketmaster-affiliated venues will receive preferential treatment. Finally, Live Nation won’t be able to punish venues that choose not to renew their contracts with Ticketmaster.