American Antitrust Institute rejecting Live Nation/Ticketmaster merger

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Posted by chicagomedia.org on April 15, 2009 at 14:36:18:

AAI Just Says No To Live Nation Ticketmaster Merger
April 15, 2009 | FMQB

As the Department of Justice reviews the proposed merger between Ticketmaster and Live Nation, the American Antitrust Institute (AAI) has released an analysis of the deal, concluding that it should be rejected. "If the merger proceeds, the benefits from competition that has been blooming [between Live Nation and Ticketmaster] in the last 18 months will likely be lost, pathways to new competition will be blocked, and the industry will be dominated at almost all levels by a single massive entity," the AAI wrote in a 58-page paper, according to the New York Post.

AAI added that the merged company would be "operating free of significant competition [and] would charge prices above those that would prevail in a competitive market, and that consumers would have little recourse but to pay that price or not attend at all." The report noted that Live Nation Entertainment would effectively control the markets for primary ticket sales, secondary ticket sales, artist management, performance-venue management and live event promotion. "The merger would confer on Live Nation Entertainment the capacity to give favorable deals to its own artists and venues and impose less unfavorable terms on independent managers, promoters and venues," it said.

So far, the proposed deal has faced harsh scrutiny from lawmakers. "It seems to be monopolistic, plain and simple," Sen. Charles E. Schumer (D-NY) said at a Senate hearing in February. Sen. Russ Feingold (D-WI) said the merger raises "concerns about cross ownership leveraging. This combination has the potential to be even more harmful to consumer interests because Ticketmaster's market share in the ticketing market is even larger than Clear Channel's was for radio."

On the flip side, artists such as Billy Corgan, Van Halen and Shakira have spoken out in favor of the merger. However, Corgan and Van Halen are managed by Ticketmaster CEO Irving Azoff, and Shakira recently signed a 360 deal with Live Nation.

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: AAI Just Says No To Live Nation Ticketmaster Merger : April 15, 2009 | FMQB : As the Department of Justice reviews the proposed merger between Ticketmaster and Live Nation, the American Antitrust Institute (AAI) has released an analysis of the deal, concluding that it should be rejected. "If the merger proceeds, the benefits from competition that has been blooming [between Live Nation and Ticketmaster] in the last 18 months will likely be lost, pathways to new competition will be blocked, and the industry will be dominated at almost all levels by a single massive entity," the AAI wrote in a 58-page paper, according to the New York Post. : AAI added that the merged company would be "operating free of significant competition [and] would charge prices above those that would prevail in a competitive market, and that consumers would have little recourse but to pay that price or not attend at all." The report noted that Live Nation Entertainment would effectively control the markets for primary ticket sales, secondary ticket sales, artist management, performance-venue management and live event promotion. "The merger would confer on Live Nation Entertainment the capacity to give favorable deals to its own artists and venues and impose less unfavorable terms on independent managers, promoters and venues," it said. : So far, the proposed deal has faced harsh scrutiny from lawmakers. "It seems to be monopolistic, plain and simple," Sen. Charles E. Schumer (D-NY) said at a Senate hearing in February. Sen. Russ Feingold (D-WI) said the merger raises "concerns about cross ownership leveraging. This combination has the potential to be even more harmful to consumer interests because Ticketmaster's market share in the ticketing market is even larger than Clear Channel's was for radio." : On the flip side, artists such as Billy Corgan, Van Halen and Shakira have spoken out in favor of the merger. However, Corgan and Van Halen are managed by Ticketmaster CEO Irving Azoff, and Shakira recently signed a 360 deal with Live Nation.

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