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The battle has begun over the merger of music industry giants Live Nation and Ticketmaster - with officials at both companies facing a committee hearing over competition regulations.
Executives at the concert promoter announced plans earlier their this month (Feb09) to join forces with the ticketing firm to create an industry superforce in an estimated $575 million (£396 million) deal.
A string of celebrities including Seal, Shakira and Eddie Van Halen have backed the agreement, insisting the proposed merger would benefit both artists and fans.
But before the deal can go ahead, company bosses will be forced to justify the merger to the U.S.’s Subcommittee on Antitrust, Competition Policy and Consumer Rights. The hearing opened on Tuesday (24Feb09) with the city of Chicago, Illinois being used as an example by rival promoters who claim Live Nation already have an unfair advantage over the competition.
Jerry Mickelson, of Chicago-based concert company Jam Productions, insists the merger will give Live Nation bosses unprecedented control of where band’s play, because they already own most of the venues in town.
He told the hearing, "U2 doesn’t call us. Shakira doesn’t call us. Coldplay doesn’t call us. They (Live Nation) dominate the arena level. They control and have all of the outdoor amphitheatres… and with House of Blues, they are taking over the lower-level theater business as well. (This case is) the poster child for why the country has and needs antitrust law." Mickelson also claimed that Live Nation controlled 161 of the top 200 U.S. tours in 2001.
However, representatives of Live Nation and Ticketmaster claim the merger will benefit local areas with towns being given a major economic boost by the concerts held there.

Movie & Entertainment News provided by World Entertainment News Network (www.wenn.com)