[A2k] Linda Sherry: Letter to DOJ from Consumer Action re the Ticketmaster/Live Nation merge

[Manon Ress]

Letter to DOJ from Consumer Action (www.consumer-action.org) re the
Ticketmaster/Live Nation merger:


Scott D. Hammond
Acting Assistant Attorney General
U.S. Justice Department
Antitrust Division
950 Pennsylvania Ave., NW, Room 3322
Washington, DC 20530
antitrust.atr@usdoj.gov
March 13, 2009

Dear Mr. Hammond,

Consumer Action  urges you to reject the proposed merger between
Ticketmaster and Live Nation. Our organization has long been concerned
with fairness for consumers in the ticket industry. The proposed
merger between Ticketmaster and Live Nation would substantially lessen
competition and allow an even greater monopoly in the industry,
leading to higher prices for ticket buyers, especially average fans.
Ticketmaster/Live Nation would dominate all major American concert
venues, to the detriment of consumers.

Ticketmaster's service fees (and those of its subsidiaries such as
TicketsNow) are already a source of outrage among consumers. The
company charges excessive and unreasonable fees on every ticket
because of lack of competition from other firms, or in other words
"because it can." Consumer complaints are rampant about these fees and
have led to the establishment of consumer created "rip off" sites such
as Ticketmastersucks and Ticketbastard. Fans have no recourse but to
ante up and be gouged if they want to see their favorite performers
live.

Let me put a "real face" on the victims of price gouging by
Ticketmaster. S.H. of Fremont, CA wrote to us in 2008 about her
experience buying tickets to a Celtic Woman show: "TicketsNow doubled
the price of each ticket, plus charged a $48.30 service fee. On the
venue web site, the tickets sold for $80, plus a $10 service change on
each ticket. TicketsNow charged $161.00 each, plus the $48.30 for a
total of $370.30. That is a difference of $190.30. I called their 800
number to ask about the discrepancy and all I got was a very rude
person that just kept repeating, 'Did you read our agreement before
you purchased the tickets?' Well, yes, I did read it, but at the time
I didn't realize that
TicketsNow was doubling the price of the tickets until I actually got
the tickets, which TicketsNow printed off Ticketmaster's website and
mailed to me."

S.H.'s complaint is just the tip of the iceberg. If Ticketmaster and
Live Nation are allowed to merge, the combined entity would have undue
influence on booking, promotion, primary ticket sales, secondary
("scalped" and fan-to-fan) ticket sales, merchandising, direct
marketing, etc. In the view of Consumer Action, it would be highly
improbable, if not outright impossible, that a competitor could
replicate or compete with Live Nation's combined stranglehold on
ticketing and promotion. This would present a clear barrier to entry
in the industry.

Many news reports have revealed how Ticketmaster maximizes profits by
selling off the most profitable tickets on the secondary market, and
if and when those don't sell, they are put back on Ticketmaster for
face value. For Ticketmaster it's a win-win situation, while consumers
are the losers.

It appears that Ticketmaster would have a horizontal monopoly with
Live Nation and a vertical monopoly through its TicketsNow subsidiary-
double reasons for the Department of Justice to investigate this
merger thoroughly.

If allowed to merge, these firms would control so much of the music
marketplace that no one could stop them from raising ticket prices and
service fees.

Please reject this merger and protect consumers and live music fans.
Please don't allow another monopoly to be created at the expense of
the people who can least afford the higher ticket prices and service
fees. No single company should have this much control.

Sincerely,



Linda Sherry
Director, National Priorities

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Linda Sherry
Director, National Priorities

Consumer Action
PO Box 70037
Washington, DC 20024

Phone: 202-544-3088
Fax: 270-573-4104

E-mail: linda.sherry@consumer-action.org

Web site: http://www.consumer-action.org