Live Nation Entertainment, Inc., the world’s leading live entertainment company, announced today that the company has reached a settlement with the United States Department of Justice (DOJ) in the antitrust lawsuit brought by the DOJ. The company has consistently maintained that the DOJ’s allegations were without merit, and a portion of the original claims were dismissed by the court before trial began. This settlement will resolve all remaining matters with the DOJ, without any admission of wrongdoing, and the settlement will be reflected in a final proposed judgement that will be submitted to the court for approval.
Live Nation Entertainment issued the following statement:
We are pleased to have settled our lawsuit with the United States Department of Justice.
“Today marks a major step in improving the concert experience for artists and fans throughout the United States. Live Nation is proud to lead the way enhancing this experience with our amphitheaters, which will be open to all promoters, allowing these promoters to decide how best to distribute up to 50% of the tickets, and capping ticketing service fees at 15%. By giving artists greater flexibility in choosing their promotional partners and ticketing strategy while also keeping the cost of a concert more affordable for fans, we are putting more power where it should be – with artists and fans,” said Michael Rapino, President and CEO of Live Nation Entertainment.
In addition, Live Nation will be divesting its 13 exclusive booking agreements with amphitheaters nationwide. All owned and operated amphitheaters will continue to be operated by Live Nation as open venues, promoting competition and maximizing show volume.
In ticketing, Ticketmaster will be providing both exclusive and non-exclusive ticketing proposals to all major concert venues, which preserves the rights of venues to seek the type of contracts they preferred over the years while providing the government with restrictions to mitigate their concerns. At the same time, for venues that choose to do so, they may distribute some portion of their tickets through other primary ticketing marketplaces.
“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. We are happy to take greater steps to empower artists and venues in their ticketing decisions, and are confident we will continue to succeed on the quality of what we deliver,” continued Rapino.
This settlement will also include an eight-year extension of the company’s consent decree with the DOJ, including retaliation and conditioning terms, providing venues ongoing comfort the company does not condone such behavior.
There is no financial component to the settlement with the DOJ. This does not settle the claims of all plaintiffs in the lawsuit, and the company has created a $280 million settlement fund to address the states’ damages claims.
About Live Nation Entertainment
Live Nation Entertainment (NYSE: LYV) is the world’s leading live entertainment company comprised of global market leaders: Ticketmaster, Live Nation Concerts and Live Nation Media & Sponsorship. For additional information, visit www.livenationentertainment.com.
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‘ Some details of this article were extracted from the following source newsroom.livenation.com ’
