Klobuchar Slams Live Nation After Taylor Swift Chaos—As New Congress Threatens Future Of Antitrust Legislation

Topline

Sen. Amy Klobuchar (D-Minn.) criticized Live Nation for failing to deliver on consumer fairness promises made during its merger with Ticketmaster, following the Taylor Swift tour debacle earlier this week that temporarily shut down the site, making her the latest lawmaker to accuse the company of potential antitrust violations as legislative efforts to rein in tech companies’ market dominance hang in the balance of a soon-to-be split Congress.

Key Facts

Crucial Quote

In addition to Klobuchar, Rep. David Cicilline (D-R.I.) assailed the company for the “excessive wait times,” calling it an “unchecked monopoly” in a tweet, while Rep. Alexandria Ocasio-Cortez (D-N.Y.) tweeted the merger “should never have been approved.”

Contra

TicketMaster has not issued any public statements on the lawmakers’ criticism, but addressed the source of the Swift ticket issues in a statement that acknowledged it “can do more to improve the experience.”

Key Background

Ticketmaster, for years, has faced criticism over its market pull, starting as early as 1994, when Pearl Jam filed a complaint with the Department of Justice, alleging it was “an absolute monopoly” in the space. More recently, a coalition of Democratic lawmakers, including Cicilline, who chairs the antitrust subcommittee, called for an investigation in 2021 into Ticketmaster and Live Nation’s merger. The lawmakers accused Ticketmaster of abusing its SafeTix platform intended to root out fraudulent reselling practices by requiring tickets to be purchased on its site. The Department of Justice in 2019 also found Live Nation had violated its consent decree by retaliating against concert venues for using other ticket-selling platforms, and a federal court extended the decree for another 5 ½ years past its 2020 deadline as result.

What To Watch For

Legislative efforts to regulate tech companies in a new split Congress that takes office in January face an uncertain future. Foreseeing a stalemate, the White House has advocated for passage of antitrust legislation in the lame-duck session of Congress, urging lawmakers to take up a pair of bills that would rein in app operators. Rep. Kevin McCarthy (R-Calif.), who is likely to become the next House speaker, has expressed desire to tamp down on censorship of social media platforms, a view shared by many in his party, but he’s been less keen on antitrust legislation.

Chief Critic

The White House is pushing Congress to pass two bills in the lame-duck session: A Senate bill sponsored by Klobuchar and known as the American Innovation and Choice Online Act, which would prevent tech companies, such as Amazon, Apple and Google, from using their platforms to exercise an unfair advantage over competitors. A second bill, sponsored by Richard Blumenthal (D-Conn.), would prevent app companies from forcing developers to cater to their platforms and set up mechanisms to ensure fair prices for consumers.

Further Reading

McCarthy’s love-hate relationship with Silicon Valley (Politico)

Here’s how Kevin McCarthy would change the House’s tech policy agenda (Fast Company)