A powerful cadre of industry insiders are seeking to eliminate significant proposed legislation in California by pushing for amendments that would enhance, rather than eliminate, the monopolistic hold that Live Nation Entertainment has on the business, per Politico.
Currently under review by committees in the state assembly, AB2808 proposes to open up the live events ticketing marketplace by eliminating exclusive ticketing agreements between a venue, promoter, or sports organization and a ticketing platform. It would do so by requiring an open ticketing system, allowing multiple vendors to interface via API, allowing for price competition.
The legislation as originally written would also bar restrictions on ticket transfer or resale put in place by the event operator or ticketing system, and ban barring customers from entering an event strictly on the basis that they purchased a valid ticket through a resale platform rather than the “official” ticketing provider.
FURTHER READING | California Bill Seeks to Crack Down on Ticketmaster Monopoly
Naturally, the bill is being fought tooth and nail by companies like California-based Live Nation and its ticketing subsidiary Ticketmaster – which many argue uses long-term exclusive contracts and restrictive technology to strengthen its entrenched market power. The industry-side lobby, fueled by LNE’s enormous budget for the purpose, is looking to see the legislation either killed outright, or amended in a way that completely eliminates any actual changes to the current system.
The chief amendments under consideration as the bill is discussed by the Assembly’s Committee on Privaciy and Consumer Protection include a provision that would allow for artists and other rights-holders to weaponize the terms and conditions related to the sale and resale of their tickets – effectively neutering the opening of the market by allowing artists (under the advice of their management or promoter such as Live Nation Entertainment) to close the market back up.
“If this amendment is adopted, consumer protections under current California law will be undermined and California will effectively have statutorily enshrined Ticketmaster/LNE’s existing monopoly over ticket distribution, sale and use,” wrote a group of the legislation’s original supporters in a letter to committee chair Rebecca Bauer-Kahan on Monday. The supporter groups signed on to the letter included the California League of United Latin American Citizens, National Action Network Sacramento, the California Hispanic Chambers of Commerce, Si Se Puede Fresno, Tulare, Kings & Kern, Latin Business Association, and the Central Valley Yemen Society.
In another letter, the Consumer Federation of California – a co-sponsor of the bill, called the amendment “antithetical” to the bill’s original purpose. “While empowering artists is well-intentioned, to do so in this manner would allow Live Nation’s monopolistic behavior to continue unchallenged,” the letter said.
Opponents of the bill beyond Live Nation Entertainment include multiple professional sports organizations based in the state. Other backers include organizations like the National Independent Talent Association and National Independent Venue Association, which have regularly stumped on behalf of Live Nation’s priorities, giving them a sheen of grassroots appeal despite major backing by insiders like former Ticketmaster CEO Irving Azoff, now with Oak View Group.
FURTHER READING | Irving Azoff-Led Coalition Fights “BOSS and SWIFT Act” Reforms
The effort to flip a bill seeking to reign in Ticketmaster and its parents’ dominance via amendments into legislation that instead empowers them has emerged as a preferred tactic as the companies fight off numerous federal and state bills aimed at blunting their allegedly monopolistic grip on entertainment. This is effectively what was done with proposed Colorado legislation in 2023, which became so anti-consumer that its original backers opposed it, leading to a veto from Governor Jared Polis.
FURTHER READING | Colorado Gov. Polis Vetos Controversial Ticketmaster-Backed Bill
Follow the bill’s status on the California Legislative Information website here: Bill Status – AB-2808 Ticketing enterprise providers. (ca.gov)
