Live Nation Entertainment, the concert industry giant that owns Ticketmaster, came under withering attack during a Senate Judiciary hearing on Tuesday, with committee members from both parties criticizing it for the botched sale of tickets to Taylor Swift’s latest tour and calling the company a monopoly that hinders competition and harms consumers, reports The NY Times.
Over nearly three hours, senators pilloried a top Live Nation executive, Joe Berchtold, over the handling of Ms. Swift’s tickets last November and over longstanding allegations that the company badgers its competitors to win new business. Such bullying would be a violation of a Justice Department agreement that set conditions on the merger of Live Nation and Ticketmaster in 2010.
“This is all the definition of monopoly,” said Senator Amy Klobuchar, Democrat of Minnesota. “Live Nation is so powerful that it doesn’t even need to exert pressure. It doesn’t need to threaten. Because people just fall in line.”
Some at the hearing went so far as to question whether the two companies, whose agreement with the Justice Department expires in 2025, should be broken up.
Berchtold, Live Nation’s president and chief financial officer, acknowledged the problems with a presale for Ms. Swift’s tour, and apologized to the singer and her fans. When those tickets went on sale, millions of people were turned away. Technical problems also caused tickets to disappear from the online baskets of customers — whom Ticketmaster had approved through its Verified Fan system — as they were trying to buy them.
Berchtold largely attributed Ticketmaster’s failings to an assault from online bots: automated programs, run by scalpers, that seek to snatch up tickets before they ever make their way to consumers. That drew a largely skeptical response from the senators.
“This is unbelievable,” Senator Marsha Blackburn, Republican of Tennessee, said, with more than a hint of anger in her voice. “Why is it,” she added, “that you have not developed an algorithm to sort out what is a bot and what is a consumer?”
Senator John Kennedy, Republican of Louisiana, was even more blunt. “The way your company handled the ticket sales with Ms. Swift,” he said, “was a debacle.”
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