Congressman Urges Antitrust Veto of Live Nation-Ticketmaster

Authored by Mark Hefflinger on July 10, 2009 - 11:10am.

Washington - Rep. Bill Pascrell (D-N.J.) asked his fellow Congressmen to join him in urging the Justice Department's antitrust division to block the proposed $1.5 billion merger of live event giants Live Nation (NYSE: LYV) and Ticketmaster (NASD: TKTM), saying it will lead to higher ticket prices for consumers, Wired.com reported. "This merger violates both horizontal and vertical anti-trust principles, and will undoubtedly lead to higher ticket prices for the average fan," wrote Pascrell.

"Under the proposed merger, the combined company would have control over nearly every aspect of the live music business: artist management, record sales, promotion, licensing, venue control, parking, ticket sales and resales, all the way down to the hot dogs and beer."

The Justice Department, under antitrust head Christine A. Varney, is already examining the deal, but Pascrell noted that the companies have hired "a strong team of expensive lobbyists" to argue in favor of it in Washington.

Pascrell argues that the deal should be blocked chiefly because it would create a single ticketing agency vastly more powerful than all competitors; that it would effectively shutter Live Nation's new ticketing unit -- launched to compete with the already-dominant Ticketmaster; and that the merged company, with its hands in so many parts of the music business, would have an unfair advantage over any potential newcomers.

Related Links:
http://snipurl.com/miy38 (Wired.com)