The Ticketmaster hearing refers to a congressional hearing held in February 2023 to investigate allegations of anticompetitive practices by Ticketmaster and its parent company Live Nation Entertainment. The hearing was convened by the Senate Judiciary Committee’s Subcommittee on Competition Policy, Antitrust, and Consumer Rights and occurred on February 14, 2023.
The Ticketmaster hearing focused on examining the company’s dominant position in the live event ticketing industry and accusations that it has abused its market power. Several key events led up to the congressional inquiry:
- In 2010, Ticketmaster merged with Live Nation, combining the largest ticketing company with the largest concert promoter in the United States.
- Consumer groups warned the merger would lead to a monopoly in live entertainment. But it was approved anyway under certain conditions.
- Over the years, there have been continual complaints about Ticketmaster’s high fees and lack of competition in ticketing.
- In November 2022, the disastrous sale of Taylor Swift concert tickets on Ticketmaster led to public outrage and renewed scrutiny of the company’s practices.
- That debacle, which involved website outages and long wait times, underscored concerns about Ticketmaster’s dominance and ability to exploit its position.
As a result, the Senate Judiciary Committee called the hearing to investigate antitrust issues in the ticketing industry. The high-profile hearing garnered significant public attention and put pressure on Ticketmaster.
What was the focus of the hearing?
The Ticketmaster hearing examined several key issues related to competition and consumer protection in ticketing:
- Market power – Ticketmaster controls over 70% of the primary event ticketing market in the US through its Ticketmaster and LiveNation platforms. Critics allege it uses its dominance to charge exorbitant fees and engage in other anti-competitive conduct.
- Barriers to entry – Ticketmaster has exclusive ticket-selling contracts with many major venues and artists. This makes it hard for competitors to enter and expand in the market.
- Transparency – Consumer advocates want more transparency in Ticketmaster’s pricing and fees. They say hidden costs frequently lead to higher prices than fans expect to pay.
- Fair pricing – Experts testified there is evidence Ticketmaster abuses its power to charge supracompetitive prices on tickets. Its monopoly power reduces incentives to offer fair fees and prices.
- Bot attacks – Ticketmaster has struggled to prevent bot attacks that rapidly scoop up tickets, frustrating many consumers.
Examining these issues allowed Congress to review whether the ticketing market is truly competitive and if reforms are needed to improve consumer protections and access.
Who testified at the hearing?
The Ticketmaster hearing featured testimony from several expert witnesses:
Witness | Perspective |
---|---|
Joe Berchtold | President and CFO, Live Nation Entertainment (parent of Ticketmaster) |
Clyde Lawrence | Singer-songwriter affected by bot attacks on Ticketmaster |
Jerry Mickelson | President, JAM Productions (concert promoter) |
Sally Hubbard | Director of enforcement strategy, Open Markets Institute |
William Rozek | Founder, Rival Technologies (ticketing startup) |
This cross-section offered perspectives from Ticketmaster leadership, the music industry, antitrust experts, and smaller competitors. Their testimony painted a picture of Ticketmaster’s far-reaching power and the challenges consumers and other companies face in the ticketing ecosystem.
What did Ticketmaster executives say in their testimony?
Joe Berchtold, the president and CFO of Live Nation Entertainment, testified on behalf of Ticketmaster. His main arguments included:
- Ticketmaster does NOT have a monopoly. It competes against major companies like AEG, smaller players like Eventbrite, and direct ticket sales by teams and venues.
- Dynamic pricing helps match supply and demand for high-profile shows. Without it, tickets are underpriced and snapped up immediately by brokers.
- Fees cover the costs of running their global ticketing platform and are not evidence of gouging consumers.
- Ticketmaster wants to improve the consumer experience and provide more transparent pricing information.
Essentially, Berchtold denied that Ticketmaster engages in anticompetitive practices and said that many criticisms are unfounded. He positioned the company as an innovator working to serve clients and fans through a complex live event ecosystem.
What did other witnesses allege about Ticketmaster’s practices?
While Ticketmaster defended itself, other witnesses levied serious allegations of anti-competitive and unethical practices:
- Exclusive deals – Jerry Mickelson argued Ticketmaster’s exclusive deals make it impossible for other companies to compete and innovate.
- Conflicts of interest – Sally Hubbard said Ticketmaster exploits conflicts of interest from being both a ticket seller and the owner of major concert venues and promoters.
- Abuse of power – William Rozek accused Ticketmaster of purposely cutting off ticket supply and creating scarcity to drive up secondary market prices.
- Lack of oversight – Multiple critics said opaque fees, site outages, and bot problems demonstrate the perils of an unchecked monopoly in ticketing.
These witnesses argued the ticket buying experience is broken and that consumers will continue to suffer without major reforms and renewed competition in the industry.
What came out of the Ticketmaster hearing?
The Senate Judiciary Subcommittee’s Ticketmaster hearing accomplished the following:
- Provided a public forum for aggrieved consumers and critics of Ticketmaster’s practices.
- Submitted important competition issues in the ticketing sector to congressional oversight.
- Presented recommendations for addressing problems related to transparency, bots, fees, and exclusive deals.
- Developed a public record through witness testimony to inform potential future antitrust enforcement action.
- Applied pressure on Ticketmaster and Live Nation over anti-competitive concerns.
However, the hearing did not directly produce new legislation or policy changes. It’s unknown if the Department of Justice antitrust division will open an investigation into Ticketmaster. The hearing has symbolic importance for showing Congress takes allegations of monopolistic practices seriously in the ticketing industry.
What might be the long-term impacts?
Some possible long-term impacts that could stem from increased scrutiny on Ticketmaster following the congressional hearing include:
- DOJ antitrust lawsuit – Following the hearing’s revelations, the DOJ may be more likely to initiate legal action to break up Ticketmaster/LiveNation’s dominance.
- FTC consumer protection lawsuit – The FTC could separately file suit arguing Ticketmaster violates consumer protection laws.
- Strict merger oversight – Scrutiny of past mergers like Ticketmaster-LiveNation may dissuade regulators from approving similar vertical combinations in the future.
- State-level action – State attorneys general could separately investigate or bring antitrust cases under their own authority.
- Legislative reforms – New federal or state laws could tackle issues like fee caps, bot regulation, and disclosure mandates.
- Industry changes – Bad publicity and potential lawsuits may push Ticketmaster to be more proactive with consumer-friendly policies.
Despite Ticketmaster defending itself at the hearing, the heightened scrutiny initated by Congress is far from over. Ongoing legal and policy pressure seems highly likely in the wake of the Senate inquiry into the company’s practices and market power.
Conclusion
The Ticketmaster hearing in February 2023 represented a significant moment of public reckoning for the live event ticketing giant. Congress used the high-profile inquiry to amplify longstanding criticisms and concerns about Ticketmaster’s dominance in the industry. With its far-reaching power under the microscope, Ticketmaster finds itself confronted by aggrieved consumers, lawmakers, and regulators. The hearings established an important foundation of evidence should antitrust regulators or consumer protection agencies decide to pursue future enforcement actions. While immediate impacts are uncertain, the hearings signal that oversight of the ticketing sector will substantially increase going forward. That likely foreshadows policy, legislative, and legal efforts to promote competition and improve consumer protections through reforming Ticketmaster’s policies and market control.
The Ticketmaster hearing provides a cautionary tale about industry consolidation. It demonstrates how mergers that create behemoth incumbents can eventually lead to exploitation of consumers through monopolistic practices. Ticketmaster’s market power has persisted long after its controversial merger thanks to exclusive deals, high barriers to entry, and an entrenched position in the ticketing ecosystem. Their hearing shows how difficult it is to dislodge such an entrenched dominant player even in the face of valid criticisms and consumer dissatisfaction. Ultimately, the hearing serves to fuel the ongoing debate about the role of antitrust regulation, consumer protections, and competitive markets in delivering fair prices and quality experiences for customers.
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