Daniel Wolfram
Trump reportedly put his thumb on the scale and told his Department of Justice to make the antitrust case go away.
The live-entertainment industry giant Live Nation was involved in an antitrust suit with the Department of Justice because of allegations of illegally acting as a monopoly in the ticketing space. Live Nation handles the promotion of concerts and sells tickets as well, almost exclusively.
The company that also owns Ticketmaster was being sued after credible allegations of overcharging fans and concertgoers and was in danger of being broken up.
That was until the President of the United States stepped in.
Intervention from the top
President Donald Trump told the Department of Justice to settle its antitrust suit against Live Nation. The settlement came after Trump invited Live Nation CEO Michael Rapino to the White House for a private meeting, according to The Wall Street Journal.
Rapino visited the White House on February 27 to discuss a separate matter. During the meeting, Trump asked why the antitrust case had not been settled yet and subsequently directed the DOJ, including former Attorney General Pam Bondi, to make a deal.
The DOJ settlement with Live Nation has been widely criticized for how Trump arranged a swift deal and for the lack of changes Live Nation has to implement after being found guilty.
Lobbying Trump worked
Federal prosecutors reached a deal in early March, just one week into the trial. However, state prosecutors pushed ahead. In April, a federal jury decided that Live Nation operates as an illegal monopoly.
The resolution followed intensive lobbying by Live Nation in Washington. The company hired top legal representation, including an attorney defending Trump in New York, while also enlisting political allies like Kellyanne Conway to build ties with the White House.
Live Nation is defending the Trump-approved settlement. Dan Wall, executive vice president, said in a statement: “Our critics are comparing this settlement to the irrational hope of breaking up Live Nation and Ticketmaster. For the actual claims in this case, the DOJ and settling states got as much or more as they could have expected to win in court.”
Defending the deal
White House spokesperson Lauren Bis denied any wrongdoing by the White House in a statement. “Unlike Joe Biden, President Trump has not weaponized the Department of Justice against his political foes or used it to help his friends. The Department is focused on restoring law and order and keeping Americans safe.”
Critics still insist the pact is far too soft. State plaintiffs are currently urging federal Judge Arun Subramanian to reject the agreement and force a complete breakup.
The verdict is still pending regarding what kind of punishment Live Nation will face in court after being convicted. Judge Subramanian still has to decide if the settlement between Live Nation and the DOJ was reached in the best interest of consumers.
