Live Nation settlement not good enough, Illinois AG says
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The Live Nation app on a smartphone. Photo: David Paul Morris/Bloomberg via Getty Images
Illinois and dozens of other states say Live Nation's tentative agreement with the federal government doesn't do enough to protect concertgoers.
Why it matters: Live Nation's ownership of Ticketmaster has created a monopoly in live entertainment, allowing the two companies to control ticket prices for concerts and events, the U.S. Department of Justice and the states contend.
Driving the news: Entertainment giant Live Nation reached a tentative settlement this week with the Department of Justice.
- Illinois Attorney General Kwame Raoul and the attorneys general of the other states say anything short of breaking up the Live Nation/Ticketmaster merger would fall short.
What's in it: Under the tentative agreement, other promoters could book events at Live Nation-owned venues and could decide how to distribute and sell up to half of the tickets.
- Ticketmaster would cap service fees at 15% at amphitheaters it owns and operates.
- It would extend a 2010 agreement — which the DOJ said Live Nation repeatedly violated — that says the company cannot retaliate against venues that don't use Ticketmaster.
- Live Nation would divest from 13 of the hundreds of venues it owns and operates.
Between the lines: None of those 13 are in Illinois. Live Nation-owned venues in Chicago include:
- Aragon Ballroom.
- House of Blues.
- Huntington Bank Pavilion at Northerly Island.
- Credit Union 1 Amphitheatre in Tinley Park.
What they're saying: "The reported settlement does not appear to include any specific and explicit protections for fans, artists, or independent venues and festivals," Stephen Parker of the National Independent Venue Association said in a statement.
The other side: Live Nation has not admitted any wrongdoing and said in a statement, "We have never relied on exclusivity to drive our ticketing business; it has simply been the result of having the best products, services and people in the industry."
What we're watching: Where Illinois' and other states' cases go as they pledge to keep pushing for a Live Nation/Ticketmaster breakup.