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mostlysignssomeportents · 1 year ago

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Live Nation/Ticketmaster is buying Congress

I'm touring my new, nationally bestselling novel The Bezzle! Catch me THURSDAY (May 2) in WINNIPEG, then Calgary (May 3), Vancouver (May 4), Tartu, Estonia, and beyond!

Anything that can't go on forever eventually stops. Monopolies are intrinsically destabilizing and inevitably implode…eventually. Guessing which of the loathesome monopolies that make us all miserable will be the first domino is a hard call, but Ticketmaster is definitely high on my list.

It's not that event tickets are the most consequential aspect of our lives. The monopolies over pharma, fuel, finance, tech, and even beer are all more important to our day-to-day. But while Ticketmaster – and its many ramified tentacles, like Live Nation – may not be the most destructive monopoly in our world, but it pisses off people with giant megaphones and armies of rabid fans.

It's been a minute since Ticketmaster was last in the news, so let's recap. Ticketmaster bought out most of its ticketing rivals, then merged with Live Nation, the country's largest concert promoter, and bought out many of the country's largest music, stage and sports venues. They used this iron grip on the entire supply chain for performances and events to pile innumerable junk fees on every ticket sold, while drastically eroding the wages of the creative workers they nominally represented. They created a secret secondary market for tickets and worked with ticket-touts to help them run bots that bought every ticket within an instant of the opening of ticket sales, then ran an auction marketplace that made them gigantic fees on every re-sold ticket – fees the performers were not entitled to share in.

The Ticketmaster/Live Nation/venue octopus is nearly impossible to escape. Independent venues can't book Live Nation acts unless they use Ticketmaster for their tickets. Acts can't get into the large venues owned by Ticketmaster unless they sign up to have Live Nation book their tour. And when Ticketmaster buys a venue, it creams off the most successful acts, starving competing venues of blockbuster shows. They also illegally colluded with their vendors to jack up the price of concerts across the board:

https://pascrell.house.gov/uploadedfiles/ful.pdf

When Rebecca Giblin and I were writing Chokepoint Capitalism, our book about how tech and entertainment monopolies impoverish all kinds of creative workers, we were able to get insiders to go on record about every kind of monopoly, from the labels to Spotify, Kindle to the Big Five publishers and the Google-Meta ad-tech duopoly. The only exception was Ticketmaster/Live Nation: everyone involved in live performance – performers, bookers, club owners – was palpably terrified about speaking out on the record about the conglomerate:

https://chokepointcapitalism.com/

No wonder. The company has a long and notorious history of using its market power to ruin anyone who challenges it. Remember Pearl Jam?

https://www.rollingstone.com/music/music-news/pearl-jam-taking-on-ticketmaster-67440/

But anything that can't go on forever eventually stops. Not only is Ticketmaster a rapacious, vindictive monopolist – it's also an incompetent monopolist, whose IT systems are optimized for rent-extraction first, with ticket sales as a distant afterthought. This is bad no matter which artist it effects, but when Ticketmaster totally, utterly fucked up Taylor Swift's first post-lockdown tour, they incurred the wrath of the Swifties:

https://www.vox.com/culture/2022/11/21/23471763/taylor-swift-ticketmaster-monopoly

All of which explains why I've always given good odds that Ticketmaster would be first up against the wall come the antitrust revolution. It may not be the most destructive monopolist, but it is absurdly evil, and the people who hate it most are the most famous and beloved artists in the country.

For a while, it looked like I was right. Ticketmaster's colossal Taylor Swift fuckup prompted Senator Amy Klobuchar – a leading antitrust crusader – to hold hearings on the company's conduct, and led to the introduction of a raft of bills to rein in predatory ticketing practices. But as David Dayen writes for The American Prospect, Ticketmaster/Live Nation is spreading a fortune around on the Hill, hiring a deep bench of ex-Congressmen and ex-senior staffers (including Klobuchar's former chief of staff) and they've found a way to create the appearance of justice without having to suffer any consequences for their decades-long campaign of fraud and abuse:

https://prospect.org/power/2024-04-30-live-nation-strikes-up-band-washington/

Dayen opens his article with the White House Correspondents’ Dinner, which is always bracketed by a week's worth of lavish parties for Congress and hill staffers. One of the fanciest of these parties was thrown by Axios – and sponsored by Live Nation, with a performance by Jelly Roll (whose touring contract is owned by Live Nation). Attendees at the Axios/Live Nation event were bombarded with messages about the essential goodness of Live Nation (they were even printed on the cocktail napkins) and exhortations to support the Fans First Act, co-sponsored by Klobuchar and Sen John Cornyn (R-TX):

https://www.nytimes.com/2023/12/08/arts/music/fans-first-act-ticket-bill.html

Ticketmaster/Live Nation loves the Fans First Act, because – unlike other bills – it focuses primarily on the secondary market for tickets, and its main measure is a requirement for ticketing companies to disclose their junk fees upfront. Neither of these represents a major challenge to Ticketmaster/Live Nation's control over the market, which gives it the ability to slash performers' wages while jacking up prices for fans.

Fans First represents the triumph of Ticketmaster/Live Nation's media strategy, which is to blame the entire problem on bottom-feeding ticket-touts (who are mostly scum!) instead of on the single monopoly that controls the entire industry and can't stop committing financial crimes.

Axios isn't Live Nation's only partner in selling this distraction tactic. Over the past five years, the company has flushed gigantic sums of money through Washington. Its lobbying spend rose from $240k in 2018 to $1.1m in 2022, and $2.38m in 2023:

https://thehill.com/business/4431886-live-nation-doubled-lobbying-spending-to-2-4m-in-2023-amid-antitrust-threat/

The company has 37 paid lobbyists selling Congress on its behalf. 25 of them are former congressional staffers. Two are former Congressmen: Ed Whitfield (R-KY), a 21 year veteran of the House, and Mark Pryor (D-AR), a two-term senator:

https://www.bhfs.com/people/attorneys/p-s/mark-pryor

But perhaps the most galling celebrant in this lavish hymn to Citizen United is Jonathan Becker, Amy Klobuchar's former chief of staff, who jumped ship to lobby Congress on behalf of monopolists like Live Nation, who paid him $120k last year to sell their story to the Hill:

https://www.opensecrets.org/federal-lobbying/clients/lobbyists?cycle=2023&id=D000053134

Not everyone hates Fans First: it's been endorsed by the Nix the Tix coalition, largely on the strength of its regulation of secondary ticket sales. But the largest secondary seller in America by far is Live Nation itself, with a $4.5b market in reselling the tickets it sold in the first place. Fans First shifts focus from this sleazy self-dealing to competitors like Stubhub.

Fans First can be seen as an opening salvo in the long war against Ticketmaster/Live Nation. But compared to more muscular bills – like Klobuchar's stalled-out Unlock Ticketing Markets Act, it's pretty weaksauce. The Unlocking act will "prevent exclusive contracts between ticketing services and venues" – hitting Ticketmaster/Live Nation where it hurts, right in the bank-account:

https://www.klobuchar.senate.gov/public/index.cfm/2023/4/following-senate-judiciary-committee-hearing-klobuchar-blumenthal-introduce-legislation-to-increase-competition-in-live-event-ticketing-markets

It's not all gloom. Dayen reports that Ticketmaster's active lobbying in favor of Fans First has made many in Congress more skeptical of the bill, not less. And Congress isn't the only – or even the best – way to smash Ticketmaster's criminal empire. That's something the DoJ's antitrust division could power through with a lot less exposure to the legalized bribery that dominates Congress.

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2024/04/30/nix-fix-the-tix/#something-must-be-done-there-we-did-something

Image: Matt Biddulph (modified) https://www.flickr.com/photos/mbiddulph/13904063945/

CC BY-SA 2.0 https://creativecommons.org/licenses/by-sa/2.0/

Flying Logos (modified) https://commons.wikimedia.org/wiki/File:Over_$1,000,000_dollars_in_USD_$100_bill_stacks.png

CC BY-SA 4.0 https://creativecommons.org/licenses/by-sa/4.0/deed.en

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mostlysignssomeportents · 2 years ago

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Thankful for class consciousness

On November 27, I'm appearing at the Toronto Metro Reference Library with Facebook whistleblower Frances Haugen.

On November 29, I'm at NYC's Strand Books with my novel The Lost Cause, a solarpunk tale of hope and danger that Rebecca Solnit called "completely delightful."

Before the term "ecology" came along, people didn't know they were on the same side. You care about owls, I care about the ozone layer – what does the destiny of charismatic nocturnal avians have to do with the gaseous composition of the upper atmosphere?

But as James Boyle has written, the term "ecology" welded together a thousand issues into a single movement. When we talk about "looking at our world through a lens," this is what we mean – apply the right analytical lens and a motley assortment of disparate causes becomes a unified, coherent project:

https://scholarship.law.duke.edu/cgi/viewcontent.cgi?article=1013&context=dlj

Unfettered, planet-destroying, worker immiserating corporate power is only possible in the absence of such a lens. Before neoliberalism can destroy our lives, it must first convince us that we are all disconnected. "There is no such thing as society," isn't just an empty slogan: it's a weapon for dismantling the democratically accountable structures that can stand against industrial tyrants.

That's why neoliberalism is so viciously opposed to all kinds of solidarity, why corporate apologists insist that the only elections that matter are the ones where you "vote with your wallet." It's no surprise that the side with the thickest wallets wants to replace ballots with dollars!

Today, at long last, after generations of deadly corporate power-grabs, we are living through an ecology moment where all kind of fights are coalescing into one big fight: the fight to save democracy from oligarchy.

There are many tributaries flowing into this mighty river, but two of the largest are antitrust and labor. Antitrust seeks to ensure that our world is regulated by democratically accountable lawmakers who deliberate in public, rather than shareholder-accountable monopolists who deliberate in smoke-filled rooms. Labor seeks to ensure that contests between profit for the few and prosperity for the many are decided in favor of people, not profit.

This coalition is so powerful that the ruling class has never stopped attacking it. Indeed, the history of US antitrust law can be viewed as a succession of ever-more-insistent laws enacted solely to make it clear to deliberately obtuse judges that competition law is aimed at corporations, not unions:

https://pluralistic.net/2023/04/14/aiming-at-dollars/#not-men

Rising corporate power and declining worker power is bad for all of us. The failure of successive US administrations to block airline mergers led to sky-high prices and a proliferation of "junk fees" that can double the price of a ticket. The monopoly carriers stand to make $118b this year from these fees:

https://www.fastcompany.com/90981005/airlines-fees-118-billion-dark-patterns

The consolidation of the agricultural sector led to cartels that conspired to rig the prices of our food. These Les Mis LARPers rigged the price of bread!

https://www.cbc.ca/news/business/canada-bread-price-fixing-1.6883783

Remember eggflation? Nearly all the eggs in US grocery stores come from a single company, Cal-Maine, which owns dozens of brands, including "Farmhouse Eggs, Sunups, Sunny Meadow, Egg-Land’s Best and Land O’ Lakes eggs":

https://www.cnn.com/2023/01/13/business/egg-prices-cal-maine-foods/index.html

With all our eggs in one basket, it was easy for a single company to rig the egg market, blaming everything from bird flu to Russian invasion of Ukraine for doubling egg prices while their profits shot up by 65%:

https://pluralistic.net/2023/01/23/cant-make-an-omelet/#keep-calm-and-crack-on

Antitrust isn't just about monopoly – it's also about oligopoly. The American meat cartel pretends that it's not rigging markets by outsourcing its price-fixing to a "clearinghouse" called Agri Stats:

https://pluralistic.net/2023/10/04/dont-let-your-meat-loaf/#meaty-beaty-big-and-bouncy

Agri-Stats gets data from all the Big Meat companies, "anonymizes" it, and publishes it back to its subscribers, who use the service to coordinate across-the-board price-hikes that have cost the public billions in price gouging (meanwhile, Big Meat was able to secure $50b in public subsidies).

For forty years, governments have ceded power to "autocrats of trade" who usurped control "over the production, transportation, and sale of the necessaries of life":

https://pluralistic.net/2022/02/20/we-should-not-endure-a-king/

But that era is coming to an end. In the past year, American regulators have blocked airline mergers and promulgated rules banning junk fees. They've dragged price-fixing clearinghouses into court:

https://www.thebignewsletter.com/p/why-turkey-eggs-and-air-travel-just

They're getting results, too: for the second year in a row, turkey prices are down. Cranberries, too (18%). Same for whipping cream (25%). Pie crusts are down. So are russet potatoes. Airfares are down 13.2%.

The egg cartel just lost a long-running court case over the last egg price-fixing campaign, which gouged Americans from 1990-2008:

https://www.pymnts.com/cpi_posts/kellogg-kraft-secure-victory-in-price-fixing-lawsuit-against-egg-producers

The same fact-pattern that was revealed in that court case is repeated in this year's eggflation scandal:

https://farmaction.us/wp-content/uploads/2023/01/Farm-Action-Letter-to-FTC-Chair-Lina-Khan.pdf

That's terrific ammo for the FTC, and will doubtless benefit the Democrats running against would-be Indiana senator John Rust, whose family owns convicted egg cartel member Rose Acre Farms and whose wife just stepped down as chair of the board.

One underappreciated aspect of the global war on corporate power is that the same corporations commit the same crimes in countries all over the world, which means that whenever any government establishes evidence of those crimes, they are of use to all the other governments. Competition enforcers from the UK, EU, USA, Singapore, South Korea and elsewhere are coordinating to target the Big Tech cartel. Maybe Google and Facebook and Apple are bigger enough to resist any one of those governments – but all of them?

https://cmadataconference.co.uk/

One notable absence from the anti-monopoly coalition is Canada. While other countries merely stopped enforcing their competition laws in the neoliberal era, Canada never had a good competition law to enforce. Canada's official tolerance for monopolies has allowed a handful of companies to seize control over the economy of Canada and the lives of Canadians:

https://www.canadaland.com/shows/commons-monopoly/

These monopolies are largely controlled by powerful families, Canada's de facto aristocracy, whose wealth and power make them above the law and subordinate the country's democratic institutions to billionaires' whims:

https://www.canadaland.com/tag/dynasties/

At long last, Canada has called time on oligarchy. Last week's Fall Economic Statement included an announcement of a muscular new competition law, including new merger guidelines, a new "abuse of dominance" standard, and Right to Repair rules:

https://www.linkedin.com/feed/update/urn:li:activity:7132855021548769282/

The law also includes interoperability mandates for Canada's highly concentrated – and deeply corrupt – banking sector. These measures are strikingly similar to new measures just introduced in the US by the CFPB:

https://pluralistic.net/2023/10/21/let-my-dollars-go/#personal-financial-data-rights

The arrival of Canada's first fit-for-purpose competition rule coincides with all kinds of solidaristic movements in Canada that are fighting corporate power from the bottom up. Even Ontario, led by one of the most corrupt premiers in provincial history, can't break its teachers' union:

https://globalnews.ca/news/10105600/ontario-elementary-teachers-reach-contract-deal/

It's not just workers who benefit from solidarity: Tenants' unions have formed across the province in response to corporate takeovers of scarce rental stock. These finance-sector landlords have armies of lawyers who've figured out how to bypass rent-control rules and evict tenants who balk. Rather than rolling over, tenants' unions are organizing waves of rent-strikes:

https://macleans.ca/longforms/rent-strikes-canada/

As with Big Tech, the illegal tactics of the rental sector aren't confined to a single nation. In America, Wall Street landlords have dramatically increased the price of housing and kicked off an eviction epidemic the likes of which the country has never seen:

https://pluralistic.net/2023/05/16/mortgages-are-rent-control/#housing-is-a-human-right-not-an-asset

And as with Big Meat, landlords use arm's-length clearing houses to rig rental markets, coordinating across-the-board rent hikes:

https://www.propublica.org/article/yieldstar-rent-increase-realpage-rent

In other words: to fix the housing market, tenants all over the world need to learn the tactics of labor unions. Housing regulators have to learn from agricultural regulators. Americans tenants have to learn from Canadians. These aren't 1,000 different fights – they're one big fight, and the coalition for dismantling corporate power is vast and powerful.

The most powerful weapons our bosses have is convincing us that we are weak and they are strong – so strong that we shouldn't even try to fight them. But solidarity is absurdly powerful, which is why they go to such great lengths to discredit it. In Sweden, the solidarity strikes against Tesla – who refuses to recognize its maintenance workers' union – have spread to nine unions.

Tesla can't get its cars offloaded at the ports. It can't get its showrooms cleaned. No one will deliver its mail. No one will fix its chargers. The strike is spreading to Germany, and workers at its giant Berlin factory is set to walk out:

https://www.metafilter.com/201514/Swedish-Tesla-workers-go-on-strike

There's something delicious about how palpably frustrated Elon Musk is by all this, as he realizes that neither his billions nor his bully pulpit are a match for workers in solidarity:

https://www.bloomberg.com/news/articles/2023-11-23/elon-musk-calls-swedish-tesla-strikes-insane-as-impact-spreads

It's a reminder of just how fragile and weak billionaires are, when we stop believing in them and deferring to them. Rebecca Solnit's latest Guardian column adds up the ways that allowing billionaires to run the show puts us all in danger:

https://www.theguardian.com/commentisfree/2023/nov/20/billionaires-great-carbon-divide-planet-climate-crisis

They are the unelected "autocrats of trade" who control "the production, transportation, and sale of the necessaries of life." They are the force that this new ecology movement is coalescing to fight: across borders, across sectors, across identities. No matter whether you are a worker, a tenant, a voter, a shopper or a citizen, your enemy is the billionaire class.

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2023/11/24/coalescence/#solidarnosc

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