Democrats preview Ticketmaster settlement attacks if they retake power
▼ Summary
– Democrats held an unofficial “shadow hearing” to criticize the DOJ’s settlement with Live Nation-Ticketmaster as trivial and corrupt, previewing potential actions if they regain congressional power.
– The hearing featured witnesses like California AG Rob Bonta and former DOJ official Roger Alford, but lacked formal congressional record status due to Democrats’ minority in both chambers.
– Lawmakers argued the settlement fell short of a good faith deal, citing a jury verdict where states won on all claims, and alleged undue corporate influence.
– Roger Alford suggested a judge might reject the DOJ’s deal, as the same judge must now craft remedies for Live Nation’s monopoly, potentially including a breakup.
– California AG Bonta indicated the states’ breakup request could extend beyond separating Live Nation and Ticketmaster, possibly involving divestitures of venue or artist management businesses.
A group of Democratic lawmakers convened an unofficial hearing on Capitol Hill Monday to denounce the Department of Justice’s settlement with Live Nation-Ticketmaster, characterizing it as “trivial” and “pathetic.” The event served as a preview of how they might challenge Trump administration antitrust agreements if they regain control of Congress in November.
The DOJ’s settlement, reached just one week into trial and offering up to $280 million, faced widespread criticism. However, Democrats currently lack the majority power in either chamber to set committee agendas, forcing them to hold what they called a “shadow hearing.” Instead of sitting at the elevated dais, the lawmakers sat at tables on the floor, eye level with witnesses. These included California Attorney General Rob Bonta, who is continuing the fight against Live Nation-Ticketmaster; Roger Alford, a former Trump administration antitrust official who was ousted; and several entertainment industry figures, including a member of the band The Hold Steady. House Judiciary Committee Ranking Member Jamie Raskin (D-MD) noted that several artists invited to testify declined out of fear for their livelihoods. Raskin co-hosted the forum with Senate Homeland Security permanent subcommittee on investigations Ranking Member Richard Blumenthal (D-CT).
Though their statements will not be formally entered into the congressional record, the forum gave Democrats a platform to air their concerns, particularly that the DOJ’s deal was tainted by undue corporate influence. “This isn’t like some kind of pickup game,” Raskin told reporters. “The corruption permeates the administration so much that we have to start building the record because it’s such an overwhelming task. We will be using the products of all of these shadow hearings to figure out where to go.” Senate Minority Leader Chuck Schumer (D-NY) delivered opening remarks, signaling the forum’s significance.
Lawmakers pointed to the states’ overwhelming jury verdict as proof that the DOJ’s settlement fell far short of a good faith agreement, accusing the administration of corruption. On the 11-page verdict form, jurors checked “yes” on every question about whether the states proved their claims. The DOJ has defended its deal as a win for consumers. The settlement must still undergo a Tunney Act review, which assesses whether it serves the public interest.
Judges are typically reluctant to reject settlements, which is why Sen. Amy Klobuchar (D-MN) has proposed legislation to strengthen the standard. But Alford, who was fired from the DOJ and later spoke out against lobbyist influence in antitrust cases, said this could be the rare instance where the judge rejects the agreement. The same judge is now tasked with determining appropriate remedies for Live Nation’s monopoly, potentially including a breakup.
“Divestiture, it’s the nuclear option,” Bonta said. The states’ breakup request, expected to be formally submitted this week, may go beyond separating Live Nation and Ticketmaster. They are also considering asking for at least partial divestitures of Live Nation’s venue or artist management businesses. “We believe it’s warranted, but we want to be thoughtful how we ask this judge for an appropriate remedy,” he told reporters.
In response, Dan Wall, Live Nation’s executive vice president of corporate and regulatory affairs, issued a statement: “Opinions shared yesterday misrepresent how the live events industry operates. Secondary ticketing and high-demand onsales are industry-wide challenges that exist across every promoter, venue, and ticketing platform. That’s precisely why Live Nation and Ticketmaster have long supported industry-wide resale reform, including price caps and stronger consumer protections, while continuing to invest in tools that help artists manage demand and protect fans.”
Live Nation has promised to appeal the jury verdict, and it is possible the judge will deny the states the full remedies they seek. But Monday’s forum made clear that even if that happens, Democrats will remain focused on how the deal was negotiated in the first place.
(Source: The Verge)
