The Department of Justice is keeping a close eye on the music business in light of the mega-merger between Live Nation and Ticketmaster.
Justice has been contacting several independent music companies to see if they are experiencing any negative effects following the merger — which has been approved but still must pass muster with a Washington judge.
“We’ve received comments and are preparing responses to comments,” a Justice Department spokeswoman said. “There is a committee monitoring the consent decree.”
The all-stock merger, approved by Justice in January, created a new entity called Live Nation Entertainment which dominates tours, management and ticketing. Ticketmaster alone sells billions of dollars of tickets each year while Live Nation is a hugely powerful tour promoter.
Justice had reps at the South by Southwest Festival in Austin, Tex., recently to listen to comments from the music industry about the deal.
Despite the calls to independent music promoters, not everyone thinks that Justice’s compliance process is as strong as it ought to be.
One music veteran said that Justice had left out provisions that would have protected independent music artists, managers and promoters, even while safeguards are in place for independent venues.
New York promoter, John Scher, co-CEO of Metropolitan Talent Inc, was contacted by Justice in March and told The Post: “We’re hopeful that the Justice Department is as serious about the following up on this merger as they were when they approved it. They need to be if the competitive landscape has any chance of surviving.”
Meanwhile Live Nation is having a tough start to the summer.
Both Christina Aguilera and U2 postponed plans to tour and Live Nation said it would remove service charges on ticket sales during June to promote business.
Live Nation Entertainment secured $1.2 billion in loans to refinance bank borrowings in May.
Live Nation shares closed up $0.14, or 1.2 percent, to $11.83 on the New York Stock Exchange. The entertainment company’s stock is up 39 percent for the year.