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Published: January 2010

Ticketmaster-Live Nation merger is a ticket disaster

Coalition: TicketDisaster.org

In a letter to the Assistant Attorney General for Antitrust, Christine A. Varney, Consumer Action and its coalition members explain how the Ticketmaster - Live Nation merger would be harmful to consumers and should not be allowed to proceed.

Below is the full text of the letter:

We, the undersigned members of the TicketDisaster.org coalition, write to you today to again urge you to listen to the voices of thousands of consumers nationwide, 50 Members of Congress, antitrust experts, independent venue owners and promoters, ticket brokers, artists and agents as your review of the Ticketmaster-Live Nation merger enters its final stages.  The unprecedented outcry from this diverse coalition has made it loud and clear – this merger is bad for consumers, bad for competition and, we believe, violates antitrust law.  The clear path forward, we believe, should be to block this merger.

Since the proposed merger was announced in February of 2009, every major national consumer group has signaled their opposition to the deal.  In the few short weeks since our coalition came together, more than 25,000 consumers have contacted your office directly to voice concern about this merger.  Leading antitrust experts have repeatedly called the deal a violation of antitrust law.  Independent firms at every level of the live event industry view this merger as a likely death knell for competition in their industry.  Many artists, managers, promoters and others have expressed their support privately, but fear being blacklisted by the parties if they speak out.  

This proposed merger is a clear example of a dominant firm using an acquisition to preserve its monopoly power.  However, this merger also raises concerns regarding vertical integration.  In addition to dominance of the primary ticketing market, the company would control the secondary market (through the spread of paperless ticketing), artist management and event promotion services and venue ownership. Such immense barriers to entry could preclude any prospective competitor from entering the market.  This situation could leave both consumers and artists with no choice but to accept higher prices and fewer options.  By stopping this merger, you have the potential to change this disastrous scenario.

In blocking this merger, you would have the full support of our coalition and the everyday consumers who attend live events.  We stand ready to provide amicus curiae briefs, supply any necessary testimony and take whatever additional actions are necessary to let the courts know where our coalition of interests stands on this issue.  

We appreciate your office’s willingness to work with us on this merger and urge you to consider our views carefully as you conclude your review.

Other Organizations

Albert Foer, American Antitrust Institute | Susan Grant, Consumer Federation of America | Seth Hurwitz, I.M.P. Productions | John Scher, Metropolitan Talent, Inc. | Ken Solky, National Association of Ticket Brokers | Sally Greenberg, National Consumers League | Edmund Mierzwinski, U.S. Public Interest Research Group

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