A primary ticket outlet is an organization that contracts directly with venues and promoters to sell event tickets on its behalf.
137-709: Ticketmaster Entertainment, LLC is an American ticket sales and distribution company based in Beverly Hills, California , with operations in many countries around the world. In 2010, it merged with Live Nation under the name Live Nation Entertainment . The company's ticket sales are fulfilled digitally or at its two main fulfillment centers located in Charleston, West Virginia , and Pharr, Texas for both primary and secondary markets. Ticketmaster's clients include venues, artists and promoters. Clients control their events and set ticket prices, and Ticketmaster sells tickets that
274-451: A stub . You can help Misplaced Pages by expanding it . This retail business article is a stub . You can help Misplaced Pages by expanding it . This article about a corporation in the service industry is a stub . You can help Misplaced Pages by expanding it . Competition law Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law
411-418: A $ 30 refund. Ticketmaster has secretly partnered with scalpers to drive up prices for consumers. Economists characterize the secondary market in tickets as socially wasteful rent-seeking . In the mid-2000s, Ticketmaster engaged in primary market auctions that reduced the rents involved in secondary market scalping – however, Ticketmaster ended these primary market auctions, opting instead to enter into
548-479: A D.C. organization that was part of the Free Britney movement , protested outside the U.S. Capitol during the hearing "in support of ending Ticketmaster-Live Nation's monopoly over the live event and ticketing industry." On December 26, 2022, American country singer Zach Bryan criticized Ticketmaster for his Burn Burn Burn tour (2023) and listed out non-transferrable tickets to stop scalpers. He went on to release
685-484: A cloud database hosted by a third-party data services provider" that exposed personal information including payment-card details. Ticketmaster identified customers whose data may have been affected by the breach on May 23, 2024, but only notified them of this a month later in a June 22 letter. On May 20, 2024, another data breach occurred when an attacker compromised Ticketmaster’s cloud database hosted by Snowflake Inc. . Ticketmaster's parent company, Live Nation, revealed
822-404: A company which converts physical tickets into digital ones, utilising blockchain . Ticketmaster sells tickets that its clients make available to it. In 2009, Ticketmaster released a digital ticketing system that required customers to prove their identity prior to purchase. The company believed this would help circumvent brokers and scalpers. In 2016, Ticketmaster released a statement in favor of
959-543: A consent decree resulting from the Live Nation merger. The consent decree is extended through 2025 and is required to enforce its own compliance with the decree with a penalty of $ 1 million for any future violations. On May 23, 2024, the DOJ and a coalition of 29 states formally launched an antitrust suit against Live Nation and Ticketmaster. The lawsuit contends that Live Nation, which owns Ticketmaster, abused its unrivaled power in
1096-463: A fiction ... We very strongly feel the law needs to be modernized to reflect the reality of internet commerce. By keeping a price cap in place, you're really just driving the [resale] business into the shadows." That same year, musician Bruce Springsteen complained of a conflict of interest between Ticketmaster and TicketsNow after fans were directed to TicketsNow once tickets to his concert sold out on Ticketmaster.com. Irving Azoff , Ticketmaster CEO at
1233-509: A law in 1870 abolishing the penalties, though such agreements remained void. However, in Germany laws clearly validated agreements between firms to raise prices. Throughout the 18th and 19th centuries, ideas that dominant private companies or legal monopolies could excessively restrict trade were further developed in Europe. However, as in the late 19th century, a depression spread through Europe, known as
1370-713: A live album, entitled All My Homies Hate Ticketmaster . In March 2023, fans of Canadian rapper Drake also filed a class action lawsuit against Ticketmaster in the Superior Court of Quebec , alleging intentional deception and fraud. Plaintiffs claimed that the on-sale for the It's All a Blur Tour, a co-headlining concert tour by Drake and 21 Savage , "intentionally misleads consumers for [Ticketmaster's] own financial gain" by concealing information about additional show dates to drive demand and ticket prices. The suit seeks $ 300 in punitive damages per customer and compensatory damages covering
1507-458: A music festival ticketing service that provided services for festivals including Lollapalooza and Austin City Limits . The same year, the company acquired Universe, a DIY ticketing platform. In 2017, TicketWeb, Ticketmaster's self-service ticketing platform, acquired Strobe Labs, a marketing platform that allows users to market to fans through social media. In 2018, Ticketmaster acquired UPGRADED,
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#17328559217501644-532: A number of significant theoretical, legal and practical challenges. Antitrust administration and legislation can be seen as a balance between: Chapter 5 of the post-war Havana Charter contained an Antitrust code but this was never incorporated into the WTO's forerunner, the General Agreement on Tariffs and Trade 1947. Office of Fair Trading Director and Richard Whish wrote sceptically that it "seems unlikely at
1781-475: A product so much that one's smaller competitors cannot cover their costs and fall out of business. The Chicago school considers predatory pricing to be unlikely. However, in France Telecom SA v. Commission a broadband internet company was forced to pay $ 13.9 million for dropping its prices below its own production costs. It had "no interest in applying such prices except that of eliminating competitors" and
1918-475: A related case, Ticketmaster filed suit against its liability insurance carrier, Illinois Union Insurance Company, a subsidiary of ACE Limited , in 2010 for failing to aid in its defense in the 2003 suit. In June 2019, Canada's Competition Bureau fined Ticketmaster $ 4.5 million dollars ($ 3.44 million US dollars) as part of a settlement after it was discovered that Ticketmaster "topped advertised costs by more than 20% -- and sometimes as much as 65%." In addition to
2055-427: A report by Billboard revealed a strategy by Live Nation , Ticketmaster's parent company, to secretly bypass placing certain tickets for sale on the primary market and instead, place them directly on resale sites "without giving fans a chance to buy them through normal channels at face value." The company acknowledged it has "facilitated the quiet transfer of concert tickets directly into the hands of resellers through
2192-458: A statement on November 18, 2022, via her Instagram story; she asserted that she is protective of her fans and wanted to assure a quality experience for them, but found it difficult to "trust an outside entity with these relationships and loyalties". She said that she was "not going to make excuses for anyone because we asked [Ticketmaster], multiple times, if they could handle this kind of demand and we were assured they could." She concluded that she
2329-687: A three-hour hearing by the Senate judiciary committee, titled "That's the Ticket: Promoting Competition and Protecting Consumers in Live Entertainment", to analyze "the long-simmering dissatisfaction over the 2010 consent decree governing the merger of Ticketmaster and Live Nation", was held at 10:00 am EST in the Hart Senate Office Building , Washington, D.C. The hearing was telecast live. Various media outlets reported that both
2466-612: A ticket reseller in the United States, for $ 265 million. IAC spun off Ticketmaster as its own company in the summer of 2008. Later in 2008, Ticketmaster acquired Front Line Management, an artist management firm that worked with artists such as Aerosmith , Christina Aguilera and Jimmy Buffett . Front Line CEO Irving Azoff became CEO of the new company, which was renamed Ticketmaster Entertainment. In February 2009, Ticketmaster entered into an agreement to merge with event promoter Live Nation to form Live Nation Entertainment . The deal
2603-423: A ticket vendor that sold tickets online and over the phone. In 2003, IAC repurchased the remaining Ticketmaster stock that it had previously sold off. In September 2006, Ticketmaster President Sean Moriarty told NPR that Ticketmaster had lobbied several states to enact laws that would limit the ticket resale market to authorized companies. Economists worried these laws would harm competition, but Moriarty expressed
2740-497: A ticket's face value have included: As the Los Angeles Times has explained, "the 'service fee' is intentionally kept separate from the list price for two reasons: to make the base price of a ticket appear more affordable, and to create the impression that only Ticketmaster pockets that fee." In other words, "Ticketmaster is effectively paid to be a punching bag" for consumer frustration with opaque add-on fees, and then some of
2877-579: A way to provide better public services . Robert Bork argued that competition laws can produce adverse effects when they reduce competition by protecting inefficient competitors and when costs of legal intervention are greater than benefits for the consumers. An early example was enacted during the Roman Republic around 50 BC. To protect the grain trade , heavy fines were imposed on anyone directly, deliberately, and insidiously stopping supply ships. Under Diocletian in 301 A.D., an edict imposed
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#17328559217503014-575: Is a monopoly and that it must be unmerged from Live Nation Entertainment . Congressman Bill Pascrell , who had previously petitioned US Attorney General Merrick Garland in support of "strong antitrust enforcement by the Biden Administration " and criticized the merger of Ticketmaster and Live Nation, stated that he attempted to purchase tickets but was placed on the waitlist. The Tennessee Attorney General , Jonathan Skrmetti , began an investigation into "consumer complaints about chaos during
3151-615: Is a way for national authorities to coordinate their own enforcement activities. Under the doctrine of laissez-faire , antitrust is seen as unnecessary as competition is viewed as a long-term dynamic process where firms compete against each other for market dominance . In some markets, a firm may successfully dominate, but it is because of superior skill or innovativeness. However, according to laissez-faire theorists, when it tries to raise prices to take advantage of its monopoly position it creates profitable opportunities for others to compete. A process of creative destruction begins which erodes
3288-498: Is also decreased, further decreasing social welfare by creating a deadweight loss . Sources of this market power are said to include the existence of externalities , barriers to entry of the market, and the free rider problem . Markets may fail to be efficient for a variety of reasons, so the exception of competition law's intervention to the rule of laissez faire is justified if government failure can be avoided. Orthodox economists fully acknowledge that perfect competition
3425-471: Is also known as Pareto efficiency after the Italian economist Vilfredo Pareto and means that resources in an economy over the long run will go precisely to those who are willing and able to pay for them. Because rational producers will keep producing and selling, and buyers will keep buying up to the last marginal unit of possible output – or alternatively rational producers will be reduce their output to
3562-614: Is an evil... After Mill, there was a shift in economic theory, which emphasized a more precise and theoretical model of competition. A simple neo-classical model of free markets holds that production and distribution of goods and services in competitive free markets maximizes social welfare . This model assumes that new firms can freely enter markets and compete with existing firms, or to use legal language, there are no barriers to entry . By this term economists mean something very specific, that competitive free markets deliver allocative , productive and dynamic efficiency. Allocative efficiency
3699-577: Is considered a tool to stimulate economic growth. In Korea and Japan , the competition law prevents certain forms of conglomerates . In addition, competition law has promoted fairness in China and Indonesia as well as international integration in Vietnam. Hong Kong 's Competition Ordinance came into force in the year 2015. As part of the creation of the ASEAN Economic Community, the member states of
3836-414: Is difficult to prove at what point a dominant firm's prices become "exploitative" and this category of abuse is rarely found. In one case however, a French funeral service was found to have demanded exploitative prices, and this was justified on the basis that prices of funeral services outside the region could be compared. A more tricky issue is predatory pricing . This is the practice of dropping prices of
3973-567: Is implemented through public and private enforcement. It is also known as antitrust law (or just antitrust ), anti-monopoly law , and trade practices law ; the act of pushing for antitrust measures or attacking monopolistic companies (known as trusts ) is commonly known as trust busting . The history of competition law reaches back to the Roman Empire . The business practices of market traders, guilds and governments have always been subject to scrutiny, and sometimes severe sanctions. Since
4110-678: Is more than 50 percent of countries with a population exceeding 80,000 people. 81 of the 111 countries had adopted their competition laws in the past 20 years, signaling the spread of competition law following the collapse of the Soviet Union and the expansion of the European Union . Currently competition authorities of many states closely co-operate, on everyday basis, with foreign counterparts in their enforcement efforts, also in such key area as information / evidence sharing. In many of Asia's developing countries, including India, Competition law
4247-415: Is necessary to determine whether a firm is dominant, or whether it behaves "to an appreciable extent independently of its competitors, customers and ultimately of its consumer". Under EU law, very large market shares raise a presumption that a firm is dominant, which may be rebuttable. If a firm has a dominant position, then there is "a special responsibility not to allow its conduct to impair competition on
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4384-608: Is seldom observed in the real world, and so aim for what is called " workable competition ". This follows the theory that if one cannot achieve the ideal, then go for the second best option by using the law to tame market operation where it can. A group of economists and lawyers, who are largely associated with the University of Chicago , advocate an approach to competition law guided by the proposition that some actions that were originally considered to be anticompetitive could actually promote competition. The U.S. Supreme Court has used
4521-413: Is taking the necessary measures to resolve the issue and resume the sale. In December, a group of Swift's fans, called " Swifties ," filed a lawsuit against Ticketmaster and its parent company Live Nation, accusing them of fraud, anti-trust violations, and price-fixing. In the lawsuit, fans demanded $ 2,500 for each violation, which could potentially amount to several million in total. On December 9, 2022,
4658-491: The Association of South-East Asian Nations (ASEAN) pledged to enact competition laws and policies by the end of 2015. Today, all ten member states have general competition legislation in place. While there remains differences between regimes (for example, over merger control notification rules, or leniency policies for whistle-blowers), and it is unlikely that there will be a supranational competition authority for ASEAN (akin to
4795-615: The Better Online Ticket Sales Act (BOTS Act), which banned the use of ticket bots to buy large amounts of tickets online and resell them at inflated prices. The following year, the company filed a lawsuit against the ticket broker Prestige Entertainment after the company used bots to buy more than 30,000 tickets to the Broadway play " Hamilton ". The company reported nearly 500 million tickets sold for 400,000 events in 2018. In November 2020, Ticketmaster announced it will check
4932-476: The COVID-19 vaccination status of ticket buyers before issuing passes when live events return in 2021. Fans that either failed to verify their vaccination status or tested positive would be denied access to the event. The face value of Ticketmaster tickets is determined by the artist or client. In addition to the face value price, venues and Ticketmaster add fees to pay for their services. Typically, fees added to
5069-558: The Democrat and Republican senators "grilled" Ticketmaster's representative, Joe Berchtold, the company's chief financial officer . The senators questioned Berchtold over Ticketmaster's monopolistic practices, policies, ticket costs, lack of transparency, lack of defense against bots, and insensitivity to music artists. Berchtold, despite apologizing for the debacle, denied accusations of monopoly and fraud, but accepted that "there are several things we could have done better—including staggering
5206-750: The Economic liberalisation . In quest of increasing the efficiency of the nation's economy, the Government of India acknowledged the Liberalization Privatization Globalization era. As a result, Indian market faces competition from within and outside the country. This led to the need of a strong legislation to dispense justice in commercial matters and the Competition Act, 2002 was passed. The history of competition law in India dates back to
5343-688: The European Commission was no longer the only body capable of public enforcement of European Union competition law . This was done to facilitate quicker resolution of competition-related inquiries. In 2005 the Commission issued a Green Paper on Damages actions for the breach of the EC antitrust rules , which suggested ways of making private damages claims against cartels easier. Some EU Member States enforce their competition laws with criminal sanctions. As analysed by Whelan , these types of sanctions engender
5480-526: The French Revolution in 1789 the law of 14–17 June 1791 declared agreements by members of the same trade that fixed the price of an industry or labour as void, unconstitutional, and hostile to liberty. Similarly, the Austrian Penal Code of 1852 established that "agreements ... to raise the price of a commodity ... to the disadvantage of the public should be punished as misdemeanours". Austria passed
5617-657: The Great Depression of 1929 competition law disappeared from Europe and was revived following the Second World War when the United Kingdom and Germany, following pressure from the United States, became the first European countries to adopt fully fledged competition laws. At a regional level EU competition law has its origins in the European Coal and Steel Community (ECSC) agreement between France, Italy , Belgium ,
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5754-547: The Netherlands , Luxembourg and Germany in 1951 following the Second World War. The agreement aimed to prevent Germany from re-establishing dominance in the production of coal and steel as it was felt that this dominance had contributed to the outbreak of the war. Article 65 of the agreement banned cartels and article 66 made provisions for concentrations, or mergers, and the abuse of a dominant position by companies. This
5891-547: The Panic of 1873 , ideas of competition lost favour, and it was felt that companies had to co-operate by forming cartels to withstand huge pressures on prices and profits. While the development of competition law stalled in Europe during the late 19th century, in 1889 Canada enacted what is considered the first competition statute of modern times. The Act for the Prevention and Suppression of Combinations formed in restraint of Trade
6028-616: The United States Department of Justice for retaliation against venues violating its 2010 10-year consent decree from the Live Nation merger, which has been extended an additional five years from 2020 through 2025. Following the widespread criticism of the company's handling of the pre-sale of Taylor Swift 's The Eras Tour in November 2022, the Department of Justice (DOJ) began a formal investigation into Live Nation Entertainment on
6165-560: The constitutiones juris metallici by Wenceslaus II of Bohemia between 1283 and 1305, condemning combination of ore traders increasing prices; the Municipal Statutes of Florence in 1322 and 1325 followed Zeno 's legislation against state monopolies; and under Emperor Charles V in the Holy Roman Empire a law was passed "to prevent losses resulting from monopolies and improper contracts which many merchants and artisans made in
6302-517: The frontier of its possible production . Dynamic efficiency refers to the idea that business which constantly competes must research, create and innovate to keep its share of consumers. This traces to Austrian-American political scientist Joseph Schumpeter 's notion that a "perennial gale of creative destruction" is ever sweeping through capitalist economies, driving enterprise at the market's mercy. This led Schumpeter to argue that monopolies did not need to be broken up (as with Standard Oil ) because
6439-588: The general principle of European Union law of proportionality ). Article 102 prohibits the abuse of dominant position , such as price discrimination and exclusive dealing. Regulation 139/2004/EC governs mergers between firms. The general test is whether a concentration (i.e. merger or acquisition) with a community dimension (i.e. affects a number of EU member states) might significantly impede effective competition . Articles 106 and 107 provide that member state's right to deliver public services may not be obstructed, but that otherwise public enterprises must adhere to
6576-472: The grunge band Pearl Jam filed a complaint with the U.S. Department of Justice claiming Ticketmaster had cut the group out of venue bookings in a dispute over fees. The investigation was closed without action in 1995, though the Justice Department stated it would continue to monitor the developments in the ticket industry. Chuck Philips , a reporter who covered the issue, was told by sources close to
6713-487: The 1960s when the first competition law, namely the Monopolies and Restrictive Trade Practices Act (MRTP) was enacted in 1969. But after the economic reforms in 1991, this legislation was found to be obsolete in many aspects and as a result, a new competition law in the form of the Competition Act, 2002 was enacted in 2003. The Competition Commission of India , is the quasi judicial body established for enforcing provisions of
6850-460: The 20th century, competition law has become global. The two largest and most influential systems of competition regulation are United States antitrust law and European Union competition law . National and regional competition authorities across the world have formed international support and enforcement networks. Modern competition law has historically evolved on a national level to promote and maintain fair competition in markets principally within
6987-542: The Chicago school approach in several recent cases. One view of the Chicago school approach to antitrust is found in United States Circuit Court of Appeals Judge Richard Posner 's books Antitrust Law and Economic Analysis of Law . Robert Bork was highly critical of court decisions on United States antitrust law in a series of law review articles and his book The Antitrust Paradox . Bork argued that both
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#17328559217507124-749: The Clayton Act, and in the European Union, under the Merger Regulation 139/2004 (known as the "ECMR"). Competition law requires that firms proposing to merge gain authorization from the relevant government authority. The theory behind mergers is that transaction costs can be reduced compared to operating on an open market through bilateral contracts. Concentrations can increase economies of scale and scope. However often firms take advantage of their increase in market power, their increased market share and decreased number of competitors, which can adversely affect
7261-498: The Competition Act. The Anti Monopoly Law of China came into effect in 2008. For years, it was enforced by three different branches of government, but since 2018 its enforcement has been the responsibility of the State Administration for Market Regulation . The People's Daily reported that the law had generated 11 billion RMB of penalties between 2008 and 2018. By 2008, 111 countries had enacted competition laws, which
7398-644: The EEC through the "institution of a system ensuring that competition in the common market is not distorted". The two central provisions on EU competition law on companies were established in article 85, which prohibited anti-competitive agreements, subject to some exemptions, and article 86 prohibiting the abuse of dominant position. The treaty also established principles on competition law for member states, with article 90 covering public undertakings, and article 92 making provisions on state aid. Regulations on mergers were not included as member states could not establish consensus on
7535-588: The Emperor. Zeno rescinded all previously granted exclusive rights. Justinian I subsequently introduced legislation to pay officials to manage state monopolies. Legislation in England to control monopolies and restrictive practices was in force well before the Norman Conquest . The Domesday Book recorded that " foresteel " (i.e. forestalling, the practice of buying up goods before they reach market and then inflating
7672-793: The European Union), there is a clear trend towards increase in infringement investigations or decisions on cartel enforcement. Competition law is enforced at the national level through competition authorities, as well as private enforcement. The United States Supreme Court explained: Every violation of the antitrust laws is a blow to the free-enterprise system envisaged by Congress. This system depends on strong competition for its health and vigor, and strong competition depends, in turn, on compliance with antitrust legislation. In enacting these laws, Congress had many means at its disposal to penalize violators. It could have, for example, required violators to compensate federal, state, and local governments for
7809-574: The Federal Prosecutor for the Consumer , described on Twitter that the agency had already requested a report from Ticketmaster Mexico on what happened at the Estadio Azteca and asked affected consumers to formalize their complaints under the terms of the law. Due to the criticism, Ticketmaster Mexico released a statement through their social networks apologizing and saying that "the inconveniences in
7946-483: The King". The court denied the collection of a bond for the dyer's breach of agreement because the agreement was held to be a restriction on trade. English courts subsequently decided a range of cases which gradually developed competition related case law, which eventually were transformed into statute law . Europe around the 16th century was changing quickly. The new world had just been opened up, overseas trade and plunder
8083-515: The Municipal Corporations Act 1835. The English common law of restraint of trade is the direct predecessor to modern competition law later developed in the US. It is based on the prohibition of agreements that ran counter to public policy, unless the reasonableness of an agreement could be shown. It effectively prohibited agreements designed to restrain another's trade. The 1414 Dyer's is
8220-539: The Netherlands". In 1553, Henry VIII of England reintroduced tariffs for foodstuffs, designed to stabilize prices, in the face of fluctuations in supply from overseas. So the legislation read here that whereas, it is very hard and difficult to put certain prices to any such things ... [it is necessary because] prices of such victuals be many times enhanced and raised by the Greedy Covetousness and Appetites of
8357-499: The Owners of such Victuals, by occasion of ingrossing and regrating the same, more than upon any reasonable or just ground or cause, to the great damage and impoverishing of the King's subjects. Around this time organizations representing various tradesmen and handicrafts people, known as guilds had been developing, and enjoyed many concessions and exemptions from the laws against monopolies. The privileges conferred were not abolished until
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#17328559217508494-534: The Sherman Act declared illegal "every contract, in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations." Section 2 prohibits monopolies , or attempts and conspiracies to monopolize. Following the enactment in 1890 US court applies these principles to business and markets. Courts applied the Act without consistent economic analysis until 1914, when it
8631-435: The US railroads, where the capital requirement of railroad construction precluded competitive services in then scarcely settled territories. This trust allowed railroads to discriminate on rates imposed and services provided to consumers and businesses and to destroy potential competitors. Different trusts could be dominant in different industries. The Standard Oil Company trust in the 1880s controlled several markets, including
8768-448: The WTO included a range of limited provisions on various cross-border competition issues on a sector specific basis. Competition law has failed to prevent monopolization of economic activity. "The global economy is dominated by a handful of powerful transnational corporations (TNCs). ... Only 737 top holders accumulate 80% of the control over the value of all ... network control is much more unequally distributed than wealth. In particular,
8905-402: The accesses were a consequence of the presentation of an unprecedented number of fake tickets, which caused an out of the ordinary agglomeration of people and an intermittent operation of our system". They also offered refunds for the full cost of the tickets. However, PROFECO ordered that those affected not only be refunded the full cost of the ticket, but an additional 20%. On January 24, 2023,
9042-621: The act, parties must make a pre-merger notification to the U.S. Department of Justice and Federal Trade Commission prior to the completion of a transaction. As of February 2, 2021, the FTC reduced the Hart-Scott-Rodino reporting threshold to $ 92 million in combined assets for the transaction. Competition law gained new recognition in Europe in the inter-war years, with Germany enacting its first anti-cartel law in 1923 and Sweden and Norway adopting similar laws in 1925 and 1926 respectively. However, with
9179-406: The band was taking revenue from venues and promoters. As of 2016, ticket resale was Ticketmaster's fastest growing business. In 2022, Ticketmaster was experimenting with a demand-based, dynamic pricing which would vary the ticket price based upon demand. The new system is touted to give artists a higher share of the revenues that would otherwise be coming through resale ticket sales. In May 1994,
9316-435: The breach on May 31, with Australian authorities confirming they were working with the company on the incident. A class action lawsuit was filed against Ticketmaster in 2003, alleging that it did not fully disclose UPS and order processing fees added to tickets sold online. The case settlement was approved in 2015 and Ticketmaster issued vouchers and discount codes to fans who purchased tickets online between 1999 and 2013. In
9453-499: The case that the investigation was closed due to a combination of a shortage of resources and the case being difficult and having uncertain prospects. In a 2009 article by the CBC , Ticketmaster argued that legislation was needed in Ontario to protect fans from scalpers and unauthorized ticket brokers saying, "You and I both know there is a thriving ticket-broker industry ... so the law is really
9590-514: The clients make available to them. Ticketmaster also owns and operates TicketWeb, a ticketing website geared towards independent venues. Ticketmaster is subject to numerous controversies and lawsuits, alleging violations of various laws. The platform charges a fee on tickets purchased and resold on the platform. The fees from ticket sales can account for a large percentage of overall ticket costs and have received scrutiny from regulators, customers, and musicians. The company has also faced scrutiny from
9727-480: The common law restraint of trade doctrine. Rudolph Peritz has argued that competition law in the United States has evolved around two sometimes conflicting concepts of competition: first that of individual liberty, free of government intervention, and second a fair competitive environment free of excessive economic power . Since the enactment of the Sherman Act enforcement of competition law has been based on various economic theories adopted by Government. Section 1 of
9864-465: The common market". Similarly as with collusive conduct, market shares are determined with reference to the particular market in which the firm and product in question is sold. Then although the lists are seldom closed, certain categories of abusive conduct are usually prohibited under the country's legislation. For instance, limiting production at a shipping port by refusing to raise expenditure and update technology could be abusive. Tying one product into
10001-512: The company to Los Angeles to be closer to the live entertainment industry. The move enabled the company to build contracts with many well-known venues including the LA Forum . Rosen drove investment into the company and led the switch to computerized ticketing. By 1985 the company had operations in the U.S. , Canada and Europe . Under Rosen, the company moved into publishing and set up a travel agency and acquired rival Ticketron in 1991, making it
10138-440: The concert and ticketing industry to eliminate competition, lessening consumer choice and resulting in rising prices. In May 2013, Ticketmaster agreed to pay up to $ 23 million for enrolling customers into a rewards program that charged $ 9 per month. Ticketmaster made $ 85 million in fees, from customers who took about eight months on average to cancel their enrollment in the program. 1.12 million customers were eligible to claim up to
10275-408: The contest's final sold out in 36 minutes, with the remaining available shows selling out around an hour later. Following this, tickets were available on third-party resale platforms such as Viagogo , with a general admission standing ticket for the final, originally priced at £ 380, being sold for up to £11,800. Primary ticket outlet Primary ticket outlets have a direct relationship with
10412-422: The courts found specific categories of agreement, specific clauses, to fall foul of their doctrine on economic fairness, and they did not contrive an overarching conception of market power. Earlier theorists like Adam Smith rejected any monopoly power on this basis. A monopoly granted either to an individual or to a trading company has the same effect as a secret in trade or manufactures. The monopolists, by keeping
10549-468: The current stage of its development that the WTO will metamorphose into a global competition authority". Despite that, at the ongoing Doha round of trade talks for the World Trade Organization , discussion includes the prospect of competition law enforcement moving up to a global level. While it is incapable of enforcement itself, the newly established International Competition Network (ICN)
10686-595: The day of Bad Bunny 's first concert of his World's Hottest Tour in Mexico City , an unprecedented number of tickets were cancelled, affecting a considerable group of concertgoers, whose tickets were confiscated and destroyed. Because of this, Ticketmaster received a great amount of criticism because many of the attendees who were denied entry were accused of having counterfeit or cloned tickets, even though those attendees presented proof of payment or their ticket had not even been previously scanned. The procurator of Office of
10823-481: The deal that consumers get. Merger control is about predicting what the market might be like, not knowing and making a judgment. Hence the central provision under EU law asks whether a concentration would , if it went ahead, "significantly impede effective competition... in particular as a result of the creation or strengthening off a dominant position..." and the corresponding provision under US antitrust states similarly, No person shall acquire, directly or indirectly,
10960-416: The death penalty for anyone violating a tariff system, for example by buying up, concealing, or contriving the scarcity of everyday goods. More legislation came under the constitution of Zeno of 483 A.D., which can be traced into Florentine municipal laws of 1322 and 1325. This provided for confiscation of property and banishment for any trade combination or joint action of monopolies private or granted by
11097-696: The difference between the "Official Platinum" ticket prices and the regular cost for the seats. For the Eurovision Song Contest 2023 in Liverpool in May 2023, the European Broadcasting Union (EBU) and the host broadcaster BBC partnered with Ticketmaster. Prior to the ticket booking platform going live, many users complained that the Ticketmaster website had crashed with a 500 error . Tickets for
11234-528: The employees who broke the law." The allegations were first reported in 2017 when a former CrowdSurge top executive hired by Ticketmaster hacked into his former employer's database. Ticketmaster and Live Nation has faced backlash for their dynamic pricing system and "platinum" tickets when tickets for Bruce Springsteen 's and Blink-182 's 2023 tours went on sale in July and October 2022 respectively, which saw fans of both acts criticize prices for random seats across
11371-400: The estimated damage to their respective economies caused by the violations. But, this remedy was not selected. Instead, Congress chose to permit all persons to sue to recover three times their actual damages every time they were injured in their business or property by an antitrust violation. In the European Union , the so-called "Modernisation Regulation", Regulation 1/2003, established that
11508-478: The existence of a very high market share does not always mean consumers are paying excessive prices since the threat of new entrants to the market can restrain a high-market-share firm's price increases. Competition law does not make merely having a monopoly illegal, but rather abusing the power that a monopoly may confer, for instance through exclusionary practices. Market dominance is connected with decreased innovation and increased political connectedness. First, it
11645-411: The fees find their way back to the artist or venue. Utilizing such subterfuge to extract additional revenue from fans without arousing direct backlash towards themselves has become increasingly important for artists. The collapse of record album sales after the year 2000 means that as of the 2020s, 95 percent of artist income comes from concert tours . Fee amounts vary between events and are dependent on
11782-403: The first known restrictive trade agreement to be examined under English common law. A dyer had given a bond not to exercise his trade in the same town as the plaintiff for six months but the plaintiff had promised nothing in return. On hearing the plaintiff's attempt to enforce this restraint, Hull J exclaimed, "per Dieu, if the plaintiff were here, he should go to prison until he had paid a fine to
11919-573: The following statutory provision outlawed trade combination. ... we have ordained and established, that no merchant or other shall make Confederacy, Conspiracy, Coin, Imagination, or Murmur, or Evil Device in any point that may turn to the Impeachment, Disturbance, Defeating or Decay of the said Staples, or of anything that to them pertaineth, or may pertain. In continental Europe, competition principles developed in lex mercatoria . Examples of legislation enshrining competition principles include
12056-455: The grounds of monopoly , antitrust law and consumer rights violations. The U.S. Senate Judiciary Committee examined the merger with a hearing in January 2023. On May 23, 2024, the DOJ and a coalition of 29 states formally launched an antitrust suit against Live Nation and Ticketmaster. An additional 10 states joined the lawsuit, bringing the total number of co-plaintiffs to 40. Ticketmaster
12193-627: The grounds that it did not harm consumers. Running through the different critiques of US antitrust policy is the common theme that government interference in the operation of free markets does more harm than good. "The only cure for bad theory," writes Bork, "is better theory." Harvard Law School professor Philip Areeda , who favours more aggressive antitrust policy, in at least one Supreme Court case challenged Robert Bork's preference for non-intervention. When firms hold large market shares, consumers risk paying higher prices and getting lower quality products than compared to competitive markets. However,
12330-441: The hands of fewer than before. This usually means that one firm buys out the shares of another. The reasons for oversight of economic concentrations by the state are the same as the reasons to restrict firms who abuse a position of dominance, only that regulation of mergers and acquisitions attempts to deal with the problem before it arises, ex ante prevention of market dominance. In the United States merger regulation began under
12467-489: The interests of consumers ( consumer welfare ) and ensuring that entrepreneurs have an opportunity to compete in the market economy are often treated as important objectives. Competition law is closely connected with law on deregulation of access to markets, state aids and subsidies, the privatization of state owned assets and the establishment of independent sector regulators, among other market-oriented supply-side policies. In recent decades, competition law has been viewed as
12604-568: The issue at the time. Today, the Treaty of Lisbon prohibits anti-competitive agreements in Article 101(1), including price fixing . According to Article 101(2) any such agreements are automatically void. Article 101(3) establishes exemptions, if the collusion is for distributional or technological innovation, gives consumers a "fair share" of the benefit and does not include unreasonable restraints that risk eliminating competition anywhere (or compliant with
12741-552: The jurisdiction of society... both the cheapness and the good quality of commodities are most effectually provided for by leaving the producers and sellers perfectly free, under the sole check of equal freedom to the buyers for supplying themselves elsewhere. This is the so-called doctrine of Free Trade, which rests on grounds different from, though equally solid with, the principle of individual liberty asserted in this Essay. Restrictions on trade, or on production for purposes of trade, are indeed restraints; and all restraint, qua restraint,
12878-421: The latter half of the 19th century, it had become clear that large firms had become a fact of the market economy. John Stuart Mill 's approach was laid down in his treatise On Liberty (1859). Again, trade is a social act. Whoever undertakes to sell any description of goods to the public, does what affects the interest of other persons, and of society in general; and thus his conduct, in principle, comes within
13015-537: The margin at which buyers will buy the same amount as produced – there is no waste, the greatest number wants of the greatest number of people become satisfied and utility is perfected because resources can no longer be reallocated to make anyone better off without making someone else worse off; society has achieved allocative efficiency. Productive efficiency simply means that society is making as much as it can. Free markets are meant to reward those who work hard , and therefore those who will put society's resources towards
13152-400: The market constantly under-stocked, by never fully supplying the effectual demand, sell their commodities much above the natural price, and raise their emoluments, whether they consist in wages or profit, greatly above their natural rate. In The Wealth of Nations (1776) Adam Smith also pointed out the cartel problem, but did not advocate specific legal measures to combat them. People of
13289-436: The market in fuel oil , lead and whiskey . Vast numbers of citizens became sufficiently aware and publicly concerned about how the trusts negatively impacted them that the Act became a priority for both major parties. A primary concern of this act is that competitive markets themselves should provide the primary regulation of prices, outputs, interests and profits. Instead, the Act outlawed anticompetitive practices, codifying
13426-405: The market leader. In November 1993, Microsoft co-founder Paul Allen acquired an 80% stake for more than $ 325 million. In 1998, USA Networks Inc ., later named InterActiveCorp (IAC), purchased a majority stake in Ticketmaster. That same year, the company merged with CitySearch and was renamed Ticketmaster Online-CitySearch. In May 2000, Ticketmaster Online-CitySearch acquired TicketWeb Inc.,
13563-448: The monopoly. Therefore, government should not try to break up monopoly but should allow the market to work. The classical perspective on competition was that certain agreements and business practice could be an unreasonable restraint on the individual liberty of tradespeople to carry on their livelihoods. Restraints were judged as permissible or not by courts as new cases appeared and in the light of changing business circumstances. Hence
13700-474: The need to reduce corrupt scalpers and counterfeit tickets. In January 2008, Ticketmaster acquired Paciolan Inc., a developer of ticketing system applications and hosted ticketing systems, after litigation over the potential breach of antitrust laws . Also in January, Ticketmaster acquired the UK-based secondary ticket marketplace, Getmein.com. And finally, in that same January, Ticketmaster acquired TicketsNow,
13837-590: The negotiations preceding the adoption of the General Agreement on Tariffs and Trade (GATT) in 1947, limited international competition obligations were proposed within the Charter for an International Trade Organisation . These obligations were not included in GATT, but in 1994, with the conclusion of the Uruguay Round of GATT multilateral negotiations, the World Trade Organization (WTO) was created. The Agreement Establishing
13974-414: The next gale of economic innovation would do the same. Contrasting with the allocatively, productively and dynamically efficient market model are monopolies, oligopolies, and cartels. When only one or a few firms exist in the market, and there is no credible threat of the entry of competing firms, prices rise above the competitive level, to either a monopolistic or oligopolistic equilibrium price. Production
14111-419: The original intention of antitrust laws and economic efficiency was the pursuit only of consumer welfare, the protection of competition rather than competitors. Furthermore, only a few acts should be prohibited, namely cartels that fix prices and divide markets, mergers that create monopolies, and dominant firms pricing predatorily, while allowing such practices as vertical agreements and price discrimination on
14248-400: The owner of a venue or event. They will often use software to manage the sale of tickets for their clients. Primary ticket outlets charge a booking fee that is paid by the consumer to help pay for services. There are a number of primary ticket outlets around the world including: This article about a corporation or company involved in entertainment, leisure, sports and/or tourism is
14385-528: The poor and the community at large and enemies of the whole country". Under King Edward III the Statute of Labourers of 1349 fixed wages of artificers and workmen and decreed that foodstuffs should be sold at reasonable prices. On top of existing penalties, the statute stated that overcharging merchants must pay the injured party double the sum he received, an idea that has been replicated in punitive treble damages under US antitrust law . Also under Edward III,
14522-505: The pre-sale. In less than an hour of availability, the ticketing platform's servers were "unable to answer", with users "either completely logged out or in a queue 2,000-plus people strong that appeared frozen." Ticketmaster immediately published a statement saying they are working to fix the issues "as the site was unprepared to accommodate the sheer force of hundreds of thousands of Swift fans", and subsequently reported that "hundreds of thousands of tickets" had already been sold and rescheduled
14659-630: The presale of tickets" to the tour. He said in a press conference on November 16 that "a lack of competition [for Ticketmaster] has led to a poor experience and higher prices for consumers." Following investigations initiated by the Tennessee Attorney General and the North Carolina Attorney General on the grounds of consumer rights violations, the federal Department of Justice began an investigation into Live Nation Entertainment and Ticketmaster on November 18. Swift released
14796-466: The price of the base ticket. After Smith expressed his outrage, Ticketmaster refunded a portion of the fees to the purchasers. On November 15, 2022, the first day of pre-sale of tickets to verified fans for the US leg of the Eras Tour (2023) by American singer-songwriter Taylor Swift , Ticketmaster's official website crashed following "historically unprecedented demand with millions showing up", halting
14933-514: The prices) was one of three forfeitures that King Edward the Confessor could carry out through England. But concern for fair prices also led to attempts to directly regulate the market. Under Henry III an act was passed in 1266 to fix bread and ale prices in correspondence with grain prices laid down by the assizes . Penalties for breach included amercements , pillory and tumbrel . A 14th-century statute labelled forestallers as "oppressors of
15070-520: The remaining onsales to a different time, including the Capital One onsale to November 16. Fans and customers online widely criticized Ticketmaster for a flawed ticketing model that obstructed them from purchasing tickets. The word "Ticketmaster" was trending number one worldwide on various social media platforms such as Twitter and TikTok . Several US lawmakers took notice of the issue. US congresswoman Alexandria Ocasio-Cortez tweeted that Ticketmaster
15207-490: The required payment, Ticketmaster signed a consent agreement to ensure its advertising policies abide by Canadian law. In December 2020, Ticketmaster "entered into a plea agreement with federal prosecutors" and agreed to pay a $ 10 million fine after being charged with illegally accessing computer systems of a competitor. According to FBI Assistant Director-in-Charge Williams Sweeney, "Ticketmaster used stolen information to gain an advantage over its competition, and then promoted
15344-546: The sale of another can be considered abuse too, being restrictive of consumer choice and depriving competitors of outlets. This was the alleged case in Microsoft v. Commission leading to an eventual fine of million for including its Windows Media Player with the Microsoft Windows platform. A refusal to supply a facility which is essential for all businesses attempting to compete to use can constitute an abuse. One example
15481-579: The sales over a longer period of time and doing a better job setting fan expectations for getting tickets" and continued to blame "industrial-scale ticket scalping" and "unprecedented number of bots" in Swift's tour debacle. The witnesses prosecuting Ticketmaster included Jerry Mickelson, the president of JAM Creative Productions ; and Jack Groetzinger, co-founder of SeatGeek . Live Nation cited several letters of support within its testimony, including one from American country singer Garth Brooks . Free Britney America,
15618-495: The same competition principles as companies. Article 107 lays down a general rule that the state may not aid or subsidize private parties in distortion of free competition and provides exemptions for charities , regional development objectives and in the event of a natural disaster . Leading ECJ cases on competition law include Consten & Grundig v Commission and United Brands v Commission . India responded positively by opening up its economy by removing controls during
15755-424: The same time industrialisation replaced the individual artisan , or group of artisans, with paid labourers and machine-based production. Commercial success became increasingly dependent on maximizing production while minimizing cost. Therefore, the size of a company became increasingly important, and a number of European countries responded by enacting laws to regulate large companies that restricted trade. Following
15892-503: The same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices. It is impossible indeed to prevent such meetings, by any law which either could be executed, or would be consistent with liberty and justice. But though the law cannot hinder people of the same trade from sometimes assembling together, it ought to do nothing to facilitate such assemblies; much less to render them necessary. By
16029-487: The secondary market. In September 2018, the Toronto Star reported that Ticketmaster was not enforcing ticket limit rules on its resale platform, TradeDesk. Ticketmaster denied the allegations, saying it would examine its resale policies on TradeDesk, and that it "never allows ticket scalpers to buy tickets ahead of fans." One month later, a group of customers filed a class action lawsuit against Ticketmaster. In July 2019,
16166-534: The tendency to reduce artificers to idleness and beggary. This put an end to granted monopolies until King James I began to grant them again. In 1623 Parliament passed the Statute of Monopolies , which for the most part excluded patent rights from its prohibitions, as well as guilds. From King Charles I , through the civil war and to King Charles II , monopolies continued, especially useful for raising revenue. Then in 1684, in East India Company v. Sandys it
16303-419: The territorial boundaries of nation-states . National competition law usually does not cover activity beyond territorial borders unless it has significant effects at nation-state level. Countries may allow for extraterritorial jurisdiction in competition cases based on so-called "effects doctrine". The protection of international competition is governed by international competition agreements. In 1945, during
16440-499: The time, released an apology and stated that the TicketsNow link would no longer be shown for Springsteen's concerts. In 2018, the United States Department of Justice began reviewing complaints by AEG that claimed the company had engaged in anti-competitive practices. As of April 2018, the Department of Justice had not released comments on its investigation. In 2020, the Department of Justice fined Ticketmaster $ 3 million for violating
16577-575: The top ranked actors hold a control ten times bigger than what could be expected based on their wealth. ... Recent works have shown that when a financial network is very densely connected it is prone to systemic risk. Indeed, while in good times the network is seemingly robust, in bad times firms go into distress simultaneously. This knife-edge property was witnessed during the recent (2009) financial turmoil " Competition law, or antitrust law, has three main elements: Substance and practice of competition law varies from jurisdiction to jurisdiction. Protecting
16714-649: The unanimous decision in Darcy v. Allein 1602, also known as the Case of Monopolies , of the King's Bench to declare void the sole right that Queen Elizabeth I had granted to Darcy to import playing cards into England. Darcy, an officer of the Queen's household, claimed damages for the defendant's infringement of this right. The court found the grant void and that three characteristics of monopoly were (1) price increases, (2) quality decrease, (3)
16851-503: The venue going for hundreds or thousands of dollars during pre-sales or right when tickets went on sale for the general public. In March 2023, Robert Smith criticized the model and announced that the Cure would not be allowing Ticketmaster to sell dynamically-priced or platinum tickets for the band's upcoming North American tour . Smith priced tickets for the Cure's concerts for as low as $ 20, but Ticketmaster charged fees that equalled more than
16988-468: The venue, available delivery methods, and preferences of the artist. Some economists and activist groups have claimed that high ticket prices are due to a lack of competition within the music industry. In 2013, the jam band The String Cheese Incident gave fans money to purchase 400 tickets to one of its shows in order to resell them on its own site with fewer fees. The band said they were protesting Ticketmaster's ticket fees, while Ticketmaster argued that
17125-449: The years, though only at the request of the artists involved." In June 2018, Ticketmaster notified 40,000 U.K. customers that it had identified a hack caused by malicious software on a third-party customer support product it contracted. The company stated that customers who bought tickets between February and June 2018 may have had data compromised. Between April 2 and May 18, 2024, an "unauthorized third party obtained information from
17262-442: Was being cross-subsidized to capture the lion's share of a booming market. One last category of pricing abuse is price discrimination . An example of this could be a company offering rebates to industrial customers who export their sugar, but not to customers who are selling their goods in the same market. According to The World Bank's "Republic of Armenia Accumulation, Competition, and Connectivity Global Competition" report which
17399-473: Was cleared by the U.S. Justice Department in January 2010 under the condition that the company sell Paciolan to Comcast Spectacor or another firm, and license its software to Anschutz Entertainment Group (AEG), its biggest competitor. The new company, which would be called Live Nation Entertainment, would also be subject to provisions for 10 years that prevented it from retaliating against venues that partnered with competing ticketing firms. This consent decree
17536-495: Was complemented by the Clayton Act which specifically prohibited exclusive dealing agreements, particularly tying agreements and interlocking directorates, and mergers achieved by purchasing stock. From 1915 onwards the rule of reason analysis was frequently applied by courts to competition cases. However, the period was characterized by the lack of competition law enforcement. From 1936 to 1972 courts' application of antitrust law
17673-409: Was decided that exclusive rights to trade only outside the realm were legitimate, on the grounds that only large and powerful concerns could trade in the conditions prevailing overseas. The development of early competition law in England and Europe progressed with the diffusion of writings such as The Wealth of Nations by Adam Smith , who first established the concept of the market economy . At
17810-725: Was dominated by the structure-conduct-performance paradigm of the Harvard School. From 1973 to 1991, the enforcement of antitrust law was based on efficiency explanations as the Chicago School became dominant, and through legal writings such as Judge Robert Bork 's book The Antitrust Paradox . Since 1992 game theory has frequently been used in antitrust cases. With the Hart–Scott–Rodino Antitrust Improvements Act of 1976 , mergers and acquisitions came into additional scrutiny from U.S. regulators. Under
17947-450: Was extended in 2020 by an additional five years, and that the company acted in violation of the terms of the 2010 agreement. Live Nation CEO Michael Rapino was named CEO of the new company. One year after merging, Live Nation settled a previous class action lawsuit against Ticketmaster which alleged that the company had misled plaintiffs in its descriptions of delivery and processing fees. In 2015, Ticketmaster acquired Front Gate Tickets,
18084-454: Was founded in Phoenix, Arizona in 1976 by college staffers Peter Gadwa and Albert Leffler, Gordon Gunn III, as well as businessman Jerry Nelson. The company originally licensed computer programs and sold hardware for ticketing systems. Its first ticketed concert was Electric Light Orchestra , held at the University of New Mexico . In 1982, Fred Rosen was appointed CEO of Ticketmaster and moved
18221-445: Was in a case involving a medical company named Commercial Solvents . When it set up its own rival in the tuberculosis drugs market, Commercial Solvents were forced to continue supplying a company named Zoja with the raw materials for the drug. Zoja was the only market competitor, so without the court forcing supply, all competition would have been eliminated. Forms of abuse relating directly to pricing include price exploitation. It
18358-603: Was passed one year before the United States enacted the most famous legal statute on competition law, the Sherman Act of 1890. It was named after Senator John Sherman who argued that the Act "does not announce a new principle of law, but applies old and well recognised principles of common law". The Sherman Act of 1890 attempted to outlaw the restriction of competition by large companies, who co-operated with rivals to fix outputs, prices and market shares, initially through pools and later through trusts . Trusts first appeared in
18495-497: Was pouring wealth through the international economy and attitudes among businessmen were shifting. In 1561 a system of Industrial Monopoly Licenses, similar to modern patents had been introduced into England. But by the reign of Queen Elizabeth I , the system was reputedly much abused and used merely to preserve privileges, encouraging nothing new in the way of innovation or manufacture. In response English courts developed case law on restrictive business practices. The statute followed
18632-529: Was published in 2013, the Global Competitiveness Index suggests that Armenia ranks lowest among ECA (Europe and Central Asia) countries in the effectiveness of anti-monopoly policy and the intensity of competition. This low ranking somehow explains the low employment and low incomes in Armenia. A merger or acquisition involves, from a competition law perspective, the concentration of economic power in
18769-529: Was the first time that competition law principles were included in a plurilateral regional agreement and established the trans-European model of competition law. In 1957 competition rules were included in the Treaty of Rome , also known as the EC Treaty, which established the European Economic Community (EEC). The Treaty of Rome established the enactment of competition law as one of the main aims of
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