The Department of Justice is investigating Live Nation and Ticketmaster’s longtime merger for monopolistic practices, but an executive at the company doesn’t believe the investigation is questioning its “fundamental” business model.
According to The Hollywood Reporter, Live Nation President and CFO Joe Berchtold spoke at Goldman Sach’s Communacopia and Technology Conference, noting that he believes the DOJ is investigating certain business practices of the company — like all-in pricing and venue exclusivity — rather than the merger itself.
“Our fundamental business model is not really being questioned,” Berchtold reportedly said, noting that this is solely his opinion based on what he has heard of the investigation.
At the conference, Berchtold also added that he believes Ticketmaster and Live Nation are “both pro-competitive and pro-consumer,” although the business model has the pair acting as venue owners and operators, ticket sellers, and promoters simultaneously.
Berchtold went on to note that the investigation is out of the company’s hands, and the DOJ will “take what time they take.”
The DOJ investigation was sparked following the Taylor Swift ticket fiasco during the ticket sale for the popstar’s Eras World Tour. More than two dozen lawsuits were filed against Ticketmaster and Live Nation, claiming the pair “engaged in fraud, price fixing, antitrust violations, and even “intentional deception.'” Then, 31 House Democrats signed a letter addressed to Attorney General Merrick Garland, asking for Garland and the DOJ to open a formal investigation of Ticketmaster, hoping to reverse the approval of its merger with Live Nation in 2010.
A report from Politico earlier this year noted that Live Nation and Ticketmaster could be facing an anti-trust lawsuit “that claims the entertainment giant is abusing its power over the live music industry,” a source close to the investigation said. However, nothing is certain at this time.
