Ticketmaster, Live Nation Merger Approved... With Conditions

The proposed merger between Ticketmaster and Live Nation can go ahead, as long as Ticketmaster sells some of its assets first.

The U.S. Justice Department and Canada's Competition Bureau want Ticketmaster to sell Paciolan, its subsidiary ticketing business, to Philadelphia sports and entertainment company Comcast-Spectacor or another approved buyer, according to the Associated Press. Comcast-Spectacor owns the Philadelphia Flyers, Philadelphia 76ers and numerous venues throughout the United States and Canada.

The Associated Press also reports Ticketmaster must additionally license its ticketing system to Anschutz Entertainment Group (AEG). It is the second-largest live events promoter in Canada and the U.S. and is also Live Nation's main competitor.

According to Canoe, AEG will be able to buy the ticketing software, make its own or team up with another ticketing company within five years.

Critics of the proposed deal had said it would result in the two companies attaining a monopoly over the concert industry.

Ticketmaster is the world's largest retailer of entertainment events tickets, while Live Nation is the United States' largest concert producer. It started selling tickets last year to compete with Ticketmaster.

Ticketmaster was severely criticized last year after there were allegations it was diverting tickets to its TicketsNow resale site, where it was reportedly forcing consumers to pay higher prices for them.

Two class-action lawsuits were launched against Tickemaster last February.

The first was on behalf of Ontarians who had purchased tickets for an Ontario event through Ticketmaster or TicketsNow.

The second was filed on behalf of Canadians outside Ontario who purchased tickets from Ticketmaster for an event anywhere in Canada other than Ontario and were charged a convenience fee or additional service on top of the issued price.

Ontario introduced legislation in April that would stop companies like Ticketmaster from reselling event tickets at higher prices through subsidiary companies.