As President Trump attacks Amazon for potentially violating anti-trust laws and tax evasion schemes, another monster monopoly has come under scrutiny from the federal government, and this one has a real impact in the world live music. Live Nation the massive conglomerate merged with Ticket Master in 2010, despite the outcries many to form a dominant force in ticket sales and live music event production.
If you are not familiar with Anti-Trust laws, in the most basic terms possible, they are a set laws and regulations to keep any one company in a particular industry from growing so large that competition becomes impossible. They were first put into place to keep the steel and oil barrens the industrial revolution in check and keep America from becoming an Oligarchy.
A modern-day example anti-trust laws in action is when the federal government denied the purchase Office Depot by Staples, as the merging the companies would create a monopoly in the fice supply industry. Now though, the Justice Department has opened up an investigation on Live Nation regarding some serious accusations against them in the online marketplace ticket sales.
AEG Presents, the parent company Coachella actually started to report threats made against venues they serve. The venues were told they risked losing opportunities if they did not use Ticket Master (a subsidiary Live Nation) as the ticketing company for their events. These threats mean serious business. So much so the Justice Department has launched a probe.
One encounter involving the Gwinnett Center in Atlanta, which The New York Times detailed, makes it pretty clear that Live Nation is not happy throwing shows in venues where ticketing services are in control AEG subsidiaries:
“âDonât abandon Gwinnett,â he wrote to a Live Nation talent coordinator. âIf thereâs an issue or issues letâs address.â
âIssue?â the Live Nation coordinator wrote back. âThree letters. Can you guess what they are?â”
While the feud between AEG and Live Nation is long-standing, the Justice Department has not gotten involved to settle a playground rivalry. Recently Live Nation was found to be threatening companies outside the reaches AEG. What could this all mean? Fines. Massive Fines. Or even a possible break up the subsidiaries which Live Nation now consists . The investigation will take some time, and will be sure to make headlines as new developments come to light.
Source: The New York Times