The Department of Justice is currently investigating ticketing giant Ticketmaster and its parent company Live Nation for its 2010 merger and alleged monopolistic practices, however, a spending deal to keep the government operating through September would halt funding available to antitrust enforcers, possibly hindering the investigation.
A package of bills was passed by Congress in December 2022 to raise fees paid to the antitrust division and the Federal Trade Commission. The legislation was implemented to allow antitrust agencies to receive addition funding without the need for Congress to provide funds from the Treasury.
Bloomberg reports that the funding deal, which provides $233 million to the antitrust division for enforcement from fees collected from merging companies, is $45 million less than the $278 million that the Congressional Budget Office estimated the agency will collect in fees this year. A spokesperson for Democratic Senator Patty Murray — who is leading the negotiation of the budget — told the publication that the CBO has lowered that projection based on fees collected in 2023.
The deal, set to be voted on this week, would limit the DOJ antitrust division’s ability to fund enforcement through corporate filing fees for mergers and prevent enforcers from accessing those fees in future years.
“The Great War” presale debacle for Taylor Swift’s Eras Tour sparked the investigation in 2023 as thousands of “Swifties” were left empty-handed. While consumer rights organizations were pushing for the investigation for quite some time, the events helped supercharge their campaign.
| READ: Live Nation Loses Bid to Dismiss Antitrust Class Action |
Entertainment giant Live Nation is also facing a class action over alleged anti-competitive conduct, and while the company filed to dismiss the case, a judge declined. U.S. District Judge Kenly Kato issued the ruling last week and found that Live Nation may have violated securities laws, noting the suit contains “cogent and compelling” allegations regarding the company’s choice “not to disclose the full picture” of its success or antitrust concerns.
Fans and legislators have equally been vocal about Live Nation and Ticketmaster’s monopolistic practices; as a part of Fan Fairness Coalition’s “The Monopoly” campaign, live eventgoers have sent out more than 72,000 letters to Congress calling for an end to the merger, while a survey found that a majority of Americans want Live Nation to be broken-up.
Ticketmaster and Live Nation aren’t alone; the DOJ is also seeking to sue Apple Inc. after a five-year investigation, as well as initiate probes against Google, UnitedHealth Group Inc., and the proposed merger between Capital One Financial Corp. and Discover Financial Services.
