Congressional Democrats got together with key stakeholders on Monday (May 18) to criticize the settlement cut by the federal government during Live Nation’s antitrust trial, which state attorneys general ended up winning on all counts.
Top Democratic senators and representatives discussed Live Nation at a so-called “shadow hearing,” meaning the proceeding was not sanctioned by Republicans, who control both chambers. The witnesses were California Attorney General Rob Bonta, former DOJ lawyer Roger Alford, The Hold Steady keyboardist Franz Nicolay, indie promoter Jerry Mickelson and indie venue owner Tom DeGeorge.
The U.S. Department of Justice (DOJ) shocked court-watchers in March when it settled out of its blockbuster antitrust trial against Live Nation after just a few days, striking a deal that would require Live Nation to cut back on some exclusivity practices but allow it to retain ownership of Ticketmaster. Dozens of states rejected that settlement and trudged forward with the case, ultimately winning a verdict that held Live Nation liable for monopolizing the artist, venue and ticketing sides of the live music industry.
While Live Nation previously said the DOJ settlement was “a major step in improving the concert experience for artists and fans,” lawmakers spent much of Monday’s hearing criticizing Donald Trump’s appointees for inking the resolution. Sen. Chuck Schumer (D-N.Y.) described it as a “sweetheart deal, ” Rep. Jamie Raskin (D-Md.) called it a “trivial and pathetic slap on the wrist” and Sen. Amy Klobuchar (D-Minn.) said it was “a complete sellout.” They also cited reports that Live Nation hired Trump allies Kellyanne Conway and Mike Davis to lobby for the deal.
Bonta, who was one of the attorneys general to continue pursuing the Live Nation trial to a verdict, shed some light in his testimony on how the DOJ deal came to be. He said the DOJ suddenly “went quiet” midway through the trial despite their years-long united front in pursuing the case against Live Nation — and then “they burned all the trust.”
“They bailed,” said Bonta. “They left us hanging. We’re a team, and they left their teammates. They left us flatfooted for a moment, but we regrouped quickly… We were able to fight for more, and we got more.”
Related
It still remains to be seen what Live Nation’s ultimate punishment will be for the alleged antitrust violations, which the company fervently denies. A decision on so-called remedies will fall to Judge Arun Subramanian, with states set to argue for a forced sale of Ticketmaster in a major court brief expected later this week.
Live Nation, meanwhile, has said it is confident the outcome “will not be materially different than what is envisioned by the DOJ settlement.” The company also intends to appeal any unfavorable rulings, arguing that it achieved success in the market through shrewd business dealings rather than any anticompetitive activity.
Many of the lawmakers advocated on Monday for a Ticketmaster breakup. Raskin, for example, stated that Live Nation’s monopoly is so strong that artists are “seriously afraid” of the company: “Many of the performers we asked to testify today at this event would not make themselves available for fear that Live Nation Entertainment would take away their livelihood,” he said.
Nicolay, the one artist who did testify at the hearing, noted in his testimony that megastars are not the only ones affected by Live Nation’s alleged conduct. “The music industry obviously is always going to focus on the Taylor Swifts and Bruce Springsteens,” said the keyboardist, “but the monopolistic forces that control the industry equally affect the broad popular music middle class.”
Reps for Live Nation and the DOJ did not immediately return requests for comment following the hearing.
