A group of Democratic Senators is urging the U.S. District Court for the Southern District of New York to use its power under the Tunney Act to “closely scrutinize” Live Nation’s settlement with the Department of Justice.
The lawmakers argue that Live Nation has taken “anticompetitive actions that cement its position as the gatekeeper for live events and box out competitors” and that “mere behavioral safeguards” in the proposed DOJ settlement are “insufficient to remedy Live Nation-Ticketmaster’s monopoly power and — standing alone — are not in the public interest.”
The Tuesday letter is signed by Amy Klobuchar, Elizabeth Warren, Cory Booker, Richard Blumenthal, Mazie Hirono and Peter Welch.
They also said the settlement “stops far short of prying open this industry to new competition, innovation and choice” for consumers and that the facts surrounding it “point toward a deal made in response to political pressure rather than the public interest.”
The letter specifically raises concerns about the ousting of Assistant Attorney General for Antitrust Gail Slater, previous firings of Slater’s top aides, and reports of political interference and lack of transparency in the settlement process.
“This settlement appears to be part of a larger pattern of Justice Department officials reportedly overruling antitrust enforcers for political reasons,” the senators noted. “These facts and allegations suggest that a thorough examination by the court under the Tunney Act to determine whether the deal was genuinely made in the public’s interest is merited.”
“Congress enacted the antitrust laws to protect against increased prices, reduced opportunity, and stifled innovation that occurs when dominant firms abuse their market position. The proposed settlement terms, negotiated under suspicious circumstances, do not include the kinds of remedies that consumers and small businesses deserve,” their letter continued. “We urge the court to apply its authority under the Tunney Act to undertake an independent examination into whether this consent decree is in the public interest — including through taking the testimony of any officials or experts who may have relevant knowledge and requiring that the parties submit a complete description of communications concerning the settlement — and to reject the settlement if it is not in the public interest.”
In March, Live Nation and the DOJ settled the company’s Ticketmaster monopoly antitrust case for more than $200 million less than a week after the trial began. The ticketing service now must open up its technology to other third-party ticket sellers, while its long-term exclusivity contracts with venues shrink down to just four years.
However, Judge Arun Subramanian questioned the parties involved as to why he was not informed of the agreement until days after it was struck. “It shows absolute disrespect for the court, for the jury, for this entire process, and it is entirely unacceptable,” he said.
