Introduction to the Issue
The U.S. Justice Ministry (DOJ) and the Federal Trade Commission (FTC) have been dealing with a new material package from Live Nation, a company that is mainly involved in the administration of ticket sales. This package is related to the administration of President Donald Trump and other government authorities. The submission is supposed to tackle topics on the secondary map market and outlined proposed reforms to create fairness for fans and artists.
Proposed Reforms by Live Nation
Live Nation, the parent company of Ticketmaster, suggests that the ticket sales prices should have a 20 percent upper limit. They also propose that artists receive greater control over secondary ticket sales, and that the government should do more to combat bad actors, including deception and a more effective enforcement of the BOTS ACT 2016. The company believes that the current system is manipulated and that the industry deserves a system that protects the artist-fan connection.
Government Involvement
President Trump dealt with the problem of secondary sales in a March 31st Executive order entitled "Combating unfair practices in the Live Entertainment Market". In it, Trump wrote that live entertainment in the USA is affected by "unscrupulous intermediate dealers who sit at the intersection between artists and fans and impose monster fees, at the same time giving minimal value." On May 7th, the DOJ and FTC announced that they were looking for unfair and non-competitive practices in ticketing.
The Role of the DOJ and FTC
The submission of Live Nation came in the submission window on the last day of the public comment. The agencies will work together with the finance minister to create a joint report, whereby the FTC takes on the leadership in questions of the better online ticket sales law (BOTS Act). The DOJ and FTC wrote together that they will promote Trump’s Executive Order and work together to address the issues in the ticketing industry.
Recent Developments
Trump’s "Big, Beautiful Bill" (BBB), which was adopted last week in Congress, was a long-term concern of the music industry. It included a legislative template for independent musicians called Help Independent Tracks Successor (HITS), which allows musicians to deduct up to $150,000 in production costs for the year in which production takes place. In the meantime, Live Nation is faced with its own obstacles after the DOJ filed a lawsuit for violations of antitrust law.
Challenges Facing Live Nation
The general administrator, Merrick B. Garland, said in a press conference that "it is time to separate" Live Nation and Ticketmaster. He stated that the exorbitant fees and technological failures of Live Nation and Ticketmaster have been criticized by fans and artists alike. In May, Live Nation appointed Richard Grenell, Trump’s pick for the President of the Kennedy Center, to the company’s Board of Directors.
Conclusion
Live Nation Entertainment welcomes the Executive Order and the light that the president shines on secondary ticket markets. The company believes that the current system is in need of reform and that the proposed changes will create a more fair and transparent market for fans and artists. The outcome of the DOJ and FTC’s investigation and the implementation of the proposed reforms will have a significant impact on the ticketing industry and the future of live entertainment.
