DOJ, FTC open inquiry into the concert industry
The Department of Justice and Federal Trade Commission have announced a public inquiry into the live music industry's business practices and issues facing consumers.
The inquiry comes a month after an executive order from President Trump — issued on the advice of Kid Rock — to combat ticket scalpers, and ordered the government to seek comment from stakeholders across the music industry. The order asked for a report from both federal agencies in six months' time.
The DOJ said in its announcement that "The Executive Order directs the Attorney General and the FTC to 'ensure that competition laws are appropriately enforced in the concert and entertainment industry.' The Executive Order also directs the FTC to 'rigorously enforce the Better Online Tickets Sales Act.' The Executive Order also directs the Attorney General, with the Secretary of the Treasury and the Chairman of the FTC, to submit a report that identifies 'recommendations for regulations or legislation necessary to protect consumers' in the industry."
"The agencies therefore seek information from the public about unfair and anti-competitive conduct and practices in the live concert and entertainment industry," it continued.
Read more: Justice Department sues Live Nation, Ticketmaster over their 'stranglehold' on concert ticket industry
In a statement, Asst. Atty. Gen. Abigail Slater, of the Justice Department's antitrust division, said, 'Competitive live entertainment markets should deliver value to artists and fans alike. We will continue to closely examine this market and look for opportunities where vigorous enforcement of the antitrust laws can lead to increased competition that makes tickets more affordable for fans while offering fairer compensation for artists.'
FTC Chairman Andrew N. Ferguson added, 'Many Americans feel like they are being priced out of live entertainment by scalpers, bots, and other unfair and deceptive practices. Now their voices are being heard. President Trump has sent a clear message that bad actors who exploit fans and distort the marketplace will not be tolerated. The FTC is proud to help deliver on that promise and restore fair and competitive markets that benefit ordinary Americans.'
The public will have two months to submit comment about their experiences in the live music market to Regulations.gov.
Read more: Live Nation settles lawsuit over claims it misled investors about legal risks
The news comes almost a year after the DOJ and 40 states announced a sweeping antitrust lawsuit against Live Nation that accused the concert giant of acting as a monopoly, abusing the vertically-integrated structure of its merger with Ticketmaster. The suit seeks to break up the company.
"It is also absurd to claim that Live Nation and Ticketmaster wield monopoly power," wrote Dan Wall, Live Nation Entertainment's executive vice president for corporate and regulatory affairs, at the time of the suit. "DOJ is not helping consumers with their actual problems. This is why the government has never been less popular — because they pretend they are fixing your problems when instead they are pandering to a narrow set of political interests."
Read more: How Ticketmaster became the most hated name in music
The central questions of how to remedy high resale ticket prices, scalping and anti-competitive practices at concert giants like Live Nation are complex. Yet while the DOJ's suit began under the Biden administration, this announcement suggests those regulatory efforts will continue in some fashion under President Trump.
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This story originally appeared in Los Angeles Times.
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