Fallout from Trump’s Live Nation Settlement Continues

Photo Credit: Sen. Amy Klobuchar by Gage Skidmore / CC by 2.0

Senators pitch legislation to strengthen antitrust settlement procedures after finding the DOJ’s settlement with Live Nation to be lacking.

Not only do the state attorneys general find the Department of Justice’s recent settlement with Live Nation lacking, so do senators. Now, they’re pitching legislation to strengthen proceedings for antitrust-related settlements altogether to avoid the same thing happening in the future.

Calling the DOJ’s Live Nation settlement “weak,” Senator Amy Klobuchar (D-MN) introduced the Antitrust Accountability and Transparency Act last week alongside fellow Democratic Senators Dick Durbin, Cory Booker, Mazie Hirono, Richard Blumenthal, Peter Welch, Sheldon Whitehouse, Elizabeth Warren, and Chris Murphy. Together, the senators argue that the Trump-led DOJ has eroded the antitrust process with “backroom deals” that benefit major corporations and special interests.

“When the government prosecutes antitrust violations, the goal should be to uphold the law, lower prices, and protect consumers and small businesses,” said Klobuchar. “In the recent settlement between the Department of Justice and Live Nation, it is clear the American people got the raw end of the deal. This bill—which has support from antitrust enforcers from both sides of the aisle—ensures that courts have the tools to independently review settlements and approve only those that benefit the American people.”

Companion legislation is being led by Rep. Jamie Raskin in the House of Representatives. The proposed legislation would make the 1974 Tunney Act, which requires federal courts to review DOJ settlements with companies, extend to the Federal Trade Commission. Senators noted the firing of FTC commissioners during the Trump administration.

Further, the legislation would require more government disclosures on settlements, including explaining how the proposed settlement “remedies antitrust issues.” The government would have to disclose side deals, previous settlement offers, and “all communications related to the settlement.” The proposed legislation would also strengthen court reviews on settlements, requiring courts to ensure settlements “do not pose a material risk of allowing a merger or other business conduct to continue that threatens to violate the antitrust laws.”

Live Nation and the DOJ reached a settlement on March 9 over a headline-grabbing antitrust lawsuit after the trial’s first week. The settlement required Live Nation to end its exclusivity agreements with 13 amphitheaters across the nation, a 15% cap on fees for amphitheaters the company operates, and a damages payout of around $280 million.

The settlement has been unpopular with ticketing industry critics, who argue it won’t make any significant difference in the live entertainment sector. Meanwhile, Live Nation CEO Michael Rapino called the settlement “a major step in improving the concert experience for artists and fans” during his testimony in the states’ continued trial against the company.

“Live Nation is proud to lead the way enhancing this experience with our amphitheaters, which will be open to all promoters, allowing these promoters to decide how best to distribute up to 50% of the tickets, and capping ticketing service fees at 15%,” Michael Rapino said. “By giving artists greater flexibility in choosing their promotional partners and ticketing strategy while also keeping the cost of a concert more affordable for fans, we are putting more power where it should be—with artists and fans.”