NYS Music 2024

Tag: TICKET Act

  • DOJ Launches Antitrust Lawsuit Against Live Nation

    On May 22, the Department of Justice sued Live Nation alleging it has a monopoly over concert ticketing and promotion.

    The lawsuit states that Live Nation used practices such as exclusive contracts, buyouts of independent promoters, and restriction of venues to crush its market competition. The DOJ filed the lawsuit in New York’s Southern District Court, with 30 states joining the suit. States involved include Florida, Texas, and Colorado, among others.

    Exterior of US Department of Justice

    This lawsuit comes after a 2019 DOJ investigation, which found Live Nation violated the terms set by the federal government after its merger with Ticketmaster. Among these violations, was the pulling of concerts from venues that refused to exclusively use Ticketmaster. The lawsuit also alleges that Live Nation cooperated with arena operator Oak View Group to eliminate competition.

    This lawsuit came after a period of increasing backlash to Live Nation’s practices. Following its 2010 buyout of Ticketmaster, Live Nation controlled up to 80% of major concert tickets. Additionally, the company directly controls 250 venues, 60% of venue promotion, and directly manages 400 artists nationwide. This control has led to issues such as increasing ticketing fees, poor customer service, and restrictions on resale. As a result of monopolization, the DOJ says American concert-goers are “deprived of ticketing innovation and forced to use outdated technology while paying more for tickets than fans in other countries.”

    These issues came to the forefront of public attention during Taylor Swift’s 2023 Eras Tour. During the presale period, glitches in the Ticketmaster website left millions unable to purchase tickets. 

    Following this debacle, there was increasing bipartisan action against Live Nation. In January 2023, senators from both parties grilled Live Nation CFO Joe Berchtold in a three hour hearing. This hearing brought to light Ticketmaster’s failings, but also the immense sway Live Nation had over the market.

    “For too long, Live Nation and Ticketmaster have unfairly and illegally run the world of live events, abusing their dominance to overcharge fans, bully venues, and limit artists”

    – Letitia James, New York Attorney General

    This lawsuit comes after the House passage of the TICKET Act in early May 2024. The bill, introduced by Rep. Gus Bilirakis (R-FL) requires ticket sellers to display the total ticket price-including fees-in all advertisements. This step towards ticketing transparency received support from the Recording Academy, and artists ranging from Billie Eilish to Dave Matthews. Along with this congressional action, comes a Federal Trade Commission proposal to ban hidden fees on concert tickets.

    Live Nation has pushed back against these criticisms. In an essay on their website, Head of Corporate Affairs Dan Wall has claimed that Ticketmaster does not set prices, being victim to high demand and low supply. These claims, however, come in tandem with record high lobbying by Live Nation. According to OpenSecrets, the company spent a record $2.4 million, as well as hosting a lavish gala, to influence lawmakers into opposing restrictions on its practices.

    This lawsuit would greatly alter the live music industry if successful. Although the DOJ has not said how they want to break up Live Nation, it is expected that they will separate its ticketing and promotional wings. The DOJ hopes that this suit will increase choice for concert-goers, while reducing price. Additionally, this breakup could open venue doors for artists that were restricted before. This lawsuit is just the latest in a string of antitrust suits launched by the Biden administration, which has included Meta, Apple, and Amazon.

  • NIVA and the Fix The Tix Coalition Applaud Passage of the TICKET Act

    The House passed the Transparency in Charges for Key Events Ticketing Act on Wednesday to increase consumer price transparency with great praise from organizations such as NIVA and Fix The Tix Coalition.

    TICKET Act

    According to NBC, the TICKET Act would require sellers to list the ticket cost to buyers, including fees. They would also have to disclose whether the tickets they are selling are not in their possession and provide refunds if an event is canceled. It was first introduced by Rep. Gus Bilirakis, R-Fla., in June 2023.

    The act is one of several recent efforts to curb unfair practices in the ticketing industry. A group of bipartisan senators also introduced the Fans First Act in December, increasing cost transparency and preventing resellers from listing tickets at high prices. Since the Eras Tour incident in 2022, lawmakers have sought to address consumer discontent toward the ticketing industry. 

    The National Independent Venue Association (NIVA) and the Fix The Tix Coalition applauded the act’s passage. They are calling on the Senate to pass S. 3457, the Fans First Act, which has additional provisions to ban fake tickets, to ensure that deceptive imagery on websites does not trick consumers, to increase mandatory reporting of illegal BOTS, to require clear itemizations of ticket prices and fees at the beginning, and to provide meaningful enforcement of these provisions.

    We commend House passage of H.R. 3950, the TICKET Act, which will help to improve the ticket buying experience for fans, to protect the livelihoods of artists, and to preserve independent venues across the nation. Not only has the U.S. House of Representatives moved to protect consumers from predatory and deceptive ticketing practices, but states across the country, including Arizona, Maryland, Minnesota and Nevada, have recently banned, without exception, speculative tickets on a bipartisan basis. We call on Congress to do the same, to build on the act and adopt strong, enforceable, comprehensive ticketing reform legislation like the Fans First Act.

    Stephen Parker, Executive Director of the National Independent Venue Association.

    Fix The Tix Coalition also applauds the act saying, “The bill provides transparency with all-in pricing and takes important steps to combat speculative tickets and deceptive websites. We urge the Senate to build on this progress by strengthening these provisions, increasing enforcement of the BOTS Act, and providing additional avenues of enforcement to combat predatory and deceptive ticketing practices. The live entertainment ecosystem is counting on Congress to act in the best interests of fans to restore transparency and trust to our country’s broken ticketing system.”

    For more information about the bill, visit here.

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