Justice Department and 17 states have intervened in the proposed merger of

Ticketmaster and Live Nation, demanding changes that will conform to

anti-trust laws and protect consumers.</p><p>As a result of the combined federal and state effort, the newly

combined company is required to make significant changes to the merger

agreement.

</p><p>"Our office became concerned that Live Nation and Ticketmaster would be

the only option to get tickets to concerts when they announced their

merger," said Massachusetts Attorney General Martha Coakley. "We are

pleased with today's settlement, which should create a more competitive

ticketing market.

</p><p>"Inspiring and maintaining a competitive and innovative market always

benefits consumers," said Ohio Attorney General Cordray. "The settlement

we reached today preserves competition in the entertainment industry, and

will allow smaller companies the opportunity to compete while putting

pressure on the larger companies to do their jobs well."

</p><p>At issue is competition and the price consumers will have to pay for

tickets. In 2008, Ticketmaster had 80 percent of the primary ticketing

services market. Ticketmaster and Live Nation - Ticketmaster's primary

source of competition - announced plans to merge in February 2009.

</p><p>The merger was poised to eliminate Ticketmaster's largest competitor in

the primary ticketing service market, and as originally proposed,

threatened to lessen competition in that market, in all likelihood

resulting in higher prices and less innovation for consumers.

</p><p>After reviewing the proposed merger, the Department of Justice and 17

state Attorneys General decided that divestitures and anti-retaliation

provisions were necessary to protect competition. Ticketmaster must

provide access to one of its major technology platforms and sell Paciolan,

a Delaware corporation that provides ticketing services throughout the

United States and is owned by Ticketmaster. The federal and state

officials are hoping to eliminate consumer complaints, like this one about

Ticketmaster:

</p><p>"Every time I am forced to use this company I am infuriated," Melanie,

of Calabasas, Calif., told ConsumerAffairs.com earlier this month. "This

time, after five phone calls lasting over three hours in length total, I

received one ticket and $15.00 worth of extortionate charges, which are

each hilariously termed from facilities charge, convenience charge,

processing fee and my favorite TicketFast (printing fee). This is

outrageous."

</p><p>The settlement is aimed at promoting more competition, so that

consumers don't face steep add-on charges. Ticketmaster has agreed to

provide its technology platform to AEG Worldwide, the second largest

concert promoter in the United States. By acquiring Ticketmaster's

technology platform, AEG would be able to provide both primary ticketing

and concert promotion services to venues.

</p><p>"The goal of this agreement is to maintain competition in the ticket

marketplace for the benefit of concert fans throughout Pennsylvania and

across the country," said Pennsylvania Attorney General Tom Corbett.

</p><p>"The Department of Justice's proposed remedy promotes robust

competition for primary ticketing services and preserves incentives for

competitors to innovate and discount, which will benefit consumers," said

Christine Varney, Assistant Attorney General in charge of the Department

of Justice's Antitrust Division. "The proposed settlement allows for

strong competitors to Ticketmaster, allowing concert venues to have more

and better choices for their ticketing needs, and provides for

anti-retaliation provisions, which will keep the merged company in check."

</p><p>Comcast, as the likely buyer of Paciolan, is expected to become a

stronger competitor for primary ticketing services. As a result of their

acquiring the divested assets, these companies will have the tools needed

to become more effective competitors in primary ticket servicers,

according to the federal and state officials.

</p><p>In addition to divesting assets, the merged entity has agreed that it

will not retaliate against a venue that is contracting or is contemplating

contracting with another company for ticketing services. Additionally, the

merged firm cannot require venues to use the firm's concert promotion

services or artists as a condition for using the firm's primary ticketing

services. The merged firm may not use concert ticketing data it have

collected for the benefit of its non-ticketing businesses or share that

data with others.

</p><p>The settlement, if approved by the court, resolves the competitive

concerns of the U.S. Department of Justice and the 17 states as set forth

in a complaint filed simultaneously with the proposed settlement today in

the U.S. District Court of the District of Columbia.

</p><p>The states taking part in the settlement are Arizona, Arkansas,

California, Florida, Illinois, Iowa, Louisiana, Massachusetts, Nebraska,

Nevada, Ohio, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, and

Wisconsin.

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