* FEBRUARY 12, 2009 Ticketmaster Deal Draws More Ire Democrats Call for Justice Department to Block Live Nation Merger
By EVAN PEREZ Wall Street Journal http://online.wsj.com/article/SB123439547425274847.html WASHINGTON -- Two Democrats in Congress called on the Justice Department Wednesday to block the merger of Live Nation Inc. and Ticketmaster Entertainment Inc., an early salvo in what promises to be a test of the Obama administration's effort to strengthen antitrust enforcement. The Justice Department says it will carry out a "thorough investigation" of the combination. The deal, announced Tuesday, would create the most powerful force in the live-music industry. A spokesman for the companies said: "Live Nation and Ticketmaster Entertainment welcome the opportunity to fully discuss the agreed upon merger with the government and look forward to cooperating with any review of the deal." Sen. Charles Schumer, above, and Rep. Bill Pascrell wrote Attorney General Eric Holder on Wednesday to urge the Justice Department to block the merger of Ticketmaster and Live Nation on antitrust grounds. The companies claim the deal may bring consumers lower ticket prices, but it is drawing skepticism from some artists, business rivals and concert-goers who say Ticketmaster's market dominance has led to higher ticket prices. Christine Varney, President Obama's pick to head the Justice Department's antitrust division, is a former commissioner at the Federal Trade Commission with a reputation for favoring tough enforcement. She won't likely be confirmed by the Senate for another month. Sen. Charles Schumer and Rep. Bill Pascrell, Democrats from New York and New Jersey, respectively, wrote Attorney General Eric Holder on Wednesday to urge the Justice Department to block the merger on antitrust grounds. Mr. Schumer said consumers could end up paying higher prices because one company would "have control over every step of the process between fans and artists." [This ignores the hefty "service charge" that Ticket Master tacks on to every ticket it sells.] The lawmakers also said they plan to meet with FTC officials next week to push for an investigation of a snafu last week involving Bruce Springsteen concert tickets. Buyers seeking tickets via Ticketmaster were diverted to a sister Web site owned by the company that sells higher-priced tickets on the secondary market. Members of Congress don't have a formal role in merger reviews but can try to influence the public debate by conducting hearings. In some recent mergers, notably a big airline deal last year, vocal opposition by lawmakers did little to stop the deal. Ticketmaster is a veteran of antitrust battles. In 1994, the rock band Pearl Jam filed an antitrust complaint against the company and attempted to mount a concert tour without using Ticketmaster. A year later, the company emerged victorious as the Justice Department dropped an inquiry without taking any action and Pearl Jam resumed dealing with Ticketmaster. Barry Diller, Ticketmaster chairman, told Wall Street analysts on a conference call Tuesday that people blaming Ticketmaster for high prices are missing the mark. "Ticketmaster does not set prices. Live Nation does not set ticket prices. Artists set the prices," Mr. Diller said. Mr. Diller acknowledged the negative perceptions Ticketmaster would have to fight: "Ticketmaster is never perceived to be on the side of the angels because, in fact, there are only so many tickets...when they are finished selling, people get angry that they cannot get tickets." ================================================= George Antunes Voice (713) 743-3923 Associate Professor Fax (713) 743-3927 Political Science Internet: antunes at uh dot edu University of Houston Houston, TX 77204-3011 *********************************** * POST TO [email protected] * *********************************** Medianews mailing list [email protected] http://lists.etskywarn.net/mailman/listinfo/medianews
