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Reside Nation Leisure (NYSE:LYV) dropped 1.8% in after-hours buying and selling amid a report that the Justice Division is probing if the corporate’s agreements with venues to e-book expertise and function a ticketing supplier could also be anticompetitive.
The offers that Reside Nation (LYV) makes use of to land artists for its occasions are amongst practices that the regulator is reviewing, based on a WSJ report on Wednesday, which cited folks accustomed to the matter. The company can also be whether or not the corporate’s agreements prohibit venues’ means to work with different promoters or ticket companies.
“We don’t perceive DOJ to be investigating any concept that it may very well be anticompetitive for us to pay artists greater than others,” a Reside Nation spokeswoman instructed the WSJ. “Artists receives a commission based mostly on aggressive bidding, and it might be unusual, to say the least, for antitrust businesses to say that anybody ought to pay artists much less.”
The WSJ story comes after a Politico report in late July that the DOJ might file an antitrust lawsuit in opposition to the live performance promoter and its Ticketmaster unit by the top of the 12 months. No remaining resolution on a lawsuit has been made and the DOJ might resolve to not pursue a case.
The newest report comes after a New York Instances story final November that the DOJ launched an antitrust investigation into whether or not Reside Nation’s Ticketmaster unit abused energy over the dwell music business. That investigation predated what ended up as a botched sale of Taylor Swift tickets in November that led to Ticketmaster canceling the deliberate public tour sale.
Reside Nation (LYV) is ready to report Q3 outcomes on Thursday.
