AEG and SeatGeek Oppose Live Nation Settlement
AEG and SeatGeek have asked a federal judge to reject the antitrust settlement between Live Nation and the US Department of Justice, citing concerns that
AEG and SeatGeek have both submitted comments to the US Department of Justice, arguing that the proposed settlement between Live Nation and the DOJ does not serve the public interest. According to AEG, the settlement does not break Ticketmaster's grip on the market, but rather tightens it. AEG competes with Live Nation in concert promotion and ticketing, and owns venues including Crypto.com Arena in Los Angeles.
Background on the Settlement
The settlement, which was announced in March, would allow Live Nation to keep Ticketmaster, but with certain restrictions. Live Nation would be required to divest 13 amphitheater booking agreements, cap Ticketmaster's service fees at 15% of face value at Live Nation amphitheaters, set aside $280 million for state damages claims, and extend its consent decree by eight years. However, AEG and SeatGeek argue that these restrictions do not go far enough to address the anti-competitive issues in the market.
AEG's Concerns
AEG points to the 2010 and 2020 consent decrees, which imposed rules on Live Nation's conduct rather than breaking the company up, and asks why an eight-year version should succeed where fifteen years of similar restrictions failed. AEG also argues that the settlement is too cheap to deter, with an $18 million payment and a $5 million penalty per violation being insufficient to change Live Nation's incentives. According to AEG, this payment is separate from the $280 million fund and covers payments to the six states that joined the settlement.
SeatGeek's Concerns
SeatGeek, which competes with Ticketmaster in primary and secondary ticketing, also argues that the settlement does not serve the public interest. SeatGeek says that venues believe leaving Ticketmaster costs them Live Nation shows, and that it has offered retaliation insurance to at least eight major concert venues, absorbing some of the risk of lost Live Nation shows. However, SeatGeek claims that virtually all of them stayed with Ticketmaster anyway.
Comparison of Proposed Settlement Terms
| Term | Proposed Settlement | AEG's Request |
|---|---|---|
| Service Fees | Capped at 15% of face value at Live Nation amphitheaters | Ban on long-term exclusive contracts |
| Divestitures | 13 amphitheater booking agreements | Court-ordered sale of Ticketmaster |
| Consent Decree | Extended by eight years | Not specified |
| Payment | $280 million for state damages claims, $18 million payment to six states | Not specified |
AEG and SeatGeek's comments were submitted to the US Department of Justice and docketed on Thursday, September 3, and can be read in full on the DOJ's website. The Tunney Act comment period closed on September 4, and Judge Arun Subramanian must decide whether the settlement serves the public interest. The DOJ must respond to all the comments and file them with the court before Subramanian rules on the proposed judgment. Live Nation has confidence that the court will approve the settlement, despite AEG and SeatGeek's opposition.
