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Column: With Live Nation lawsuit, government signals it's fed up with alleged corporate scofflaws

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Column: With Live Nation lawsuit, government signals it's fed up with alleged corporate scofflaws

Is there a better example of arrogant corporate behavior than flouting a government decree — not once but multiple times? That’s the question raised by the antitrust lawsuit against the giant concert and ticketing conglomerate Live Nation alleging a raft of monopolistic practices.

The lawsuit, filed Thursday by the Department of Justice, 29 states and the District of Columbia, draws a picture of a company that has ruthlessly exploited its multiple roles as a dominant concert promoter, dominant owner or controller of concert venues, and dominant ticketing manager.

The combination allows Live Nation to exercise “control over which artists perform on which dates at which venues,” as well as “how fans are able to purchase tickets … and what fees those fans will pay,” according to the lawsuit.

Venues throughout the United States have come to expect that refusing to contract with Ticketmaster will result in the venue receiving fewer Live Nation concerts or none at all.

— US v. Live Nation

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The plaintiffs’ goal is to break up Live Nation — specifically, to force it to divest Ticketmaster, the ticketing service it merged with in 2010. To the federal officials and the states, the Ticketmaster deal was the original sin allowing Live Nation to build itself a near-monopoly in the live music industry.

This was predictable: Mergers that brought together content producers and content distributors have been a persistent headache for antitrust enforcers — witness the mergers of NBCUniversal with the cable company Comcast and AT&T with Time Warner, the owner of CNN, HBO, Warner Bros. and much more.

Seeing anticompetitive problems on the horizon, the U.S. and 19 states originally sued to block the Live Nation-Ticketmaster deal in 2010. The case was settled with a consent decree in which Live Nation promised not to condition the provision of live shows to venues that chose not to use Ticketmaster as their ticketing agent, or to threaten or retaliate against any venues contracted with a rival ticketer, such as StubHub or SeatGeek.

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By 2020, the government said it had compiled evidence that Live Nation had been violating the decree for years by doing exactly what it had promised not to do. “Venues throughout the United States,” the government alleged, “have come to expect that refusing to contract with Ticketmaster will result in the venue receiving fewer Live Nation concerts or none at all. … This is a loss that most venues can ill-afford to risk.”

The government sued again, this time settling the case with a deal that extended the initial consent decree by more than five years (to Dec. 31, 2025), imposed an independent monitor on the company, and set a penalty of $1 million for each violation.

Yet here we are again. Since the 2020 settlement, according to the new lawsuit, “Live Nation and Ticketmaster have committed additional, different, and more expansive violations of the antitrust laws.” The consent decrees, the lawsuit says, have “failed to restrain Live Nation and Ticketmaster from violating other antitrust laws in increasingly serious ways.”

Now the plaintiffs say they’re serious. Live Nation has thumbed its nose at the authorities for more than 20 years, the lawsuit says. Live Nation and Ticketmaster got what they wanted in negotiations with the government in 2010 and “promptly consummated” their deal, but they “failed to live up to their end of the bargain.” Yes, the government has needed some two decades to decide to take a stand, but it may be progress that’s it’s finally trying to do so now.

What does Live Nation have to say about all this? Mostly huffing and puffing. The company attributes the case filing to “intense political pressure on DOJ to file a lawsuit, and a long-term lobbying campaign from rivals trying to limit competition.” It calls itself “another casualty of this Administration’s decision to turn over antitrust enforcement to a populist urge that simply rejects how antitrust law works. … In reality it is just anti-business.”

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The political pressure, the company says, derives in part from consumer frustration with high ticket prices and extortionate service fees; it warns that its divesting Ticketmaster won’t do anything to reduce ticket prices or fees and that Ticketmaster’s “commissions” as a share of total prices are much lower than those of other “digital marketplaces” such as Airbnb, Uber and PlayStation.

As far as I’m aware, none of those firms is in the live music business, but Live Nation’s whine may be a hint of what its legal defense may be. One key defense in antitrust cases is to try to define the market allegedly being monopolized as broadly as possible, minimizing the defendant’s share of that relevant market.

The government plaintiffs say Live Nation controls 60% of concert promotions at major venues, owns or controls 60% of the top amphitheaters in the U.S., and through Ticketmaster controls 80% or more of major venues’ primary ticketing for concerts. If Live Nation can guide a judge or jury into thinking of its market as “digital marketplaces” generally, its percentages will look measly.

Live Nation also says that its operating profit margin is only 1.5%, while those of Meta, Alphabet and Apple are all 24% or higher. Of course those companies are all in businesses different from Live Nation’s — indeed, different from one another’s.

Before going more deeply into the allegations against Live Nation, a few words about Ticketmaster’s history. The company’s grip on the live ticketing market and its habit of mulcting concertgoers with junk fees have existed for decades, long predating its merger with Live Nation.

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In the mid-1990s, Pearl Jam, then the bestselling band in the country, picked a fight with Ticketmaster over fees it charged for the band’s shows. Even then the ticket agency was too powerful to beat. The conflict, which was closely followed by my late colleague Chuck Philips, ended with a loss for Pearl Jam, which eventually had to give up its plans to stage a concert tour without Ticketmaster’s participation. It resulted in a congressional hearing and an antitrust investigation, but no government action.

Popular touring artists have regularly groused about Ticketmaster since then. Garth Brooks, Neil Young, R.E.M., the Grateful Dead and Aerosmith were among the acts that supported Pearl Jam in its fight. Most recently, technological glitches connected with Ticketmaster’s handling of tickets for Taylor Swift’s Eras tour infuriated fans and provoked another congressional hearing; Ticketmaster blamed the fiasco on scalpers and astronomical demand for the tour.

That brings us back to the latest lawsuit. The government plaintiffs paint Live Nation as a corporation so arrogant it would make Shakespeare’s Iago blush. The plaintiffs offer chapter and verse of episodes in which Live Nation allegedly secured contracts for Ticketmaster by hinting to venues, if not stating outright, that switching to a rival would mean the loss of Live Nation dates.

The lawsuit quotes a 2019 interview with Variety in which Live Nation Chief Executive Michael Rapino acknowledged that under the 2010 consent decree, “We can’t say to a Ticketmaster venue that says they want to use a different ticketing platform, ‘If you do that, we won’t put shows in your building.’” But he also put into words an implicit threat: “We have to put the show where we make the most economics, and maybe that venue [that wants to use a different ticketing platform] won’t be the best economic place anymore because we don’t hold the revenue.”

Rapino also said , “ Every now and then one of our competitors runs to the DOJ. … We get an inquiry from the DOJ … and we’ve never found anything wrong.” If Live Nation was breaching its consent decree, he added, the company “would have been exposed as being in violation long ago.” About three months after he offered that cocksure assurance, the Justice Department filed a second lawsuit alleging that Live Nation had been consistently violating the consent decree.

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The most interesting passage in the new lawsuit concerns Live Nation’s relationship with its onetime competitor, Oak View Group. That firm was founded in 2015 by Tim Leiweke, a former executive with Anschutz Entertainment Group, and agent and manager Irving Azoff. According to the lawsuit, the group’s contracts with leading venues and artists quickly turned into a troubling rival to Live Nation.

The two companies reached a cooperative arrangement in which Oak View avoided competing with Live Nation for artists and tours. The deal led to a “cozy relationship” in which Oak View has described itself as a “pimp” and a “hammer” for Live Nation.

The lawsuit quotes exchanges in which Leiweke allegedly assured Rapino that “I always protect you on rebates, promotor [sic] position, ticketing.” Oak View, the government plaintiffs say, has worked to keep Ticketmaster on contract at its venues and “flip” those using other ticket agents to Ticketmaster over time. (Oak View declined comment.)

Independent venues have learned that they thwart Live Nation at their peril, the governments allege. The plaintiffs have kept the names of complaining venues from their legal filings, arguing that it’s necessary “to protect venues” from Live Nation’s “retaliatory conduct,” an approach one typically sees in mob prosecutions.

A 2021 episode involved the Brooklyn, N.Y., arena Barclays Center, which switched from Ticketmaster to SeatGeek, because the latter offered Barclays a higher percentage share of fees from resold tickets (the venue’s name isn’t mentioned in the lawsuit, but the facts match the case). A Live Nation executive warned the arena’s CEO that the venue “should think about bigger relationship with LN not just who is writing a bigger sponsorship check.”

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Live Nation then switched several concerts to other venues, the lawsuit states. Within a year, Barclays returned to Ticketmaster.

In another case, Live Nation threatened to deny admission to any customer holding a ticket issued by StubHub for a concert at the Los Angeles Coliseum in 2021, where Ticketmaster claimed to hold an exclusive ticketing contract; hundreds of concertgoers were turned away.

I couldn’t find a reference to any such concert, but the allegation matches an incident that involved a concert by the Black Keys at the Wiltern theater in 2019, when a dispute between Ticketmaster and StubHub and other ticketing services resulted in hundreds of customers being turned away at the door.

That was one case in which Ticketmaster’s hard-nosed competitive policies led to a wave of consumer discontent. There’s more. In 2022, Ticketmaster inaugurated a policy in which purchased tickets can be transferred only between Ticketmaster account holders.

In other words, members of a party of concertgoers have to all sign up for accounts in other to receive the tickets from the purchaser. That’s a boon for Ticketmaster’s database. The lawsuit quotes Rapino boasting that the transfer rule allows Live Nation to “not only know the person that bought the ticket, but … those three people that you are taking to the show.”

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Live Nation, the plaintiffs note, “can monetize this unique trove of data in its various businesses to both increase its bottom line and further entrench its positions across the live entertainment industry.”

Can anything stop Live Nation from continuing these practices? Splitting off Ticketmaster from the rest of Live Nation might be relatively easy, since the original merger was approved based on conditions that the government says have been relentlessly violated.

Theoretically, cleaving the company’s interest in promoting concerts and filling venues from its interest in extracting the maximum in junk fees from powerless customers would do much to foster competition in the ticketing business.

But it’s proper to note that there are multiple businesses that position themselves as stakeholders in live entertainment. Arena, amphitheater and stadium operators might not care about junk fees charged to patrons, as long as they get a cut of the action. Moreover, customers are always going to pay through the nose for tickets to high-profile, massively popular acts like Taylor Swift.

It may be true, as Live Nation says, that this lawsuit may not bring prices down even if it’s successful. In the entertainment industry, there’s always someone looking to take a cut of your dollar.

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U.S. Space Force awards $1.6 billion in contracts to South Bay satellite builders

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U.S. Space Force awards .6 billion in contracts to South Bay satellite builders

The U.S. Space Force announced Friday it has awarded satellite contracts with a combined value of about $1.6 billion to Rocket Lab in Long Beach and to the Redondo Beach Space Park campus of Northrop Grumman.

The contracts by the Space Development Agency will fund the construction by each company of 18 satellites for a network in development that will provide warning of advanced threats such as hypersonic missiles.

Northrop Grumman has been awarded contracts for prior phases of the Proliferated Warfighter Space Architecture, a planned network of missile defense and communications satellites in low Earth orbit.

The contract announced Friday is valued at $764 million, and the company is now set to deliver a total of 150 satellites for the network.

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The $805-million contract awarded to Rocket Lab is its largest to date. It had previously been awarded a $515 million contract to deliver 18 communications satellites for the network.

Founded in 2006 in New Zealand, the company builds satellites and provides small-satellite launch services for commercial and government customers with its Electron rocket. It moved to Long Beach in 2020 from Huntington Beach and is developing a larger rocket.

“This is more than just a contract. It’s a resounding affirmation of our evolution from simply a trusted launch provider to a leading vertically integrated space prime contractor,” said Rocket Labs founder and chief executive Peter Beck in online remarks.

The company said it could eventually earn up to $1 billion due to the contract by supplying components to other builders of the satellite network.

Also awarded contracts announced Friday were a Lockheed Martin group in Sunnyvalle, Calif., and L3Harris Technologies of Fort Wayne, Ind. Those contracts for 36 satellites were valued at nearly $2 billion.

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Gurpartap “GP” Sandhoo, acting director of the Space Development Agency, said the contracts awarded “will achieve near-continuous global coverage for missile warning and tracking” in addition to other capabilities.

Northrop Grumman said the missiles are being built to respond to the rise of hypersonic missiles, which maneuver in flight and require infrared tracking and speedy data transmission to protect U.S. troops.

Beck said that the contracts reflects Rocket Labs growth into an “industry disruptor” and growing space prime contractor.

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California-based company recalls thousands of cases of salad dressing over ‘foreign objects’

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California-based company recalls thousands of cases of salad dressing over ‘foreign objects’

A California food manufacturer is recalling thousands of cases of salad dressing distributed to major retailers over potential contamination from “foreign objects.”

The company, Irvine-based Ventura Foods, recalled 3,556 cases of the dressing that could be contaminated by “black plastic planting material” in the granulated onion used, according to an alert issued by the U.S. Food and Drug Administration.

Ventura Foods voluntarily initiated the recall of the product, which was sold at Costco, Publix and several other retailers across 27 states, according to the FDA.

None of the 42 locations where the product was sold were in California.

Ventura Foods said it issued the recall after one of its ingredient suppliers recalled a batch of onion granules that the company had used n some of its dressings.

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“Upon receiving notice of the supplier’s recall, we acted with urgency to remove all potentially impacted product from the marketplace. This includes urging our customers, their distributors and retailers to review their inventory, segregate and stop the further sale and distribution of any products subject to the recall,” said company spokesperson Eniko Bolivar-Murphy in an emailed statement. “The safety of our products is and will always be our top priority.”

The FDA issued its initial recall alert in early November. Costco also alerted customers at that time, noting that customers could return the products to stores for a full refund. The affected products had sell-by dates between Oct. 17 and Nov. 9.

The company recalled the following types of salad dressing:

  • Creamy Poblano Avocado Ranch Dressing and Dip
  • Ventura Caesar Dressing
  • Pepper Mill Regal Caesar Dressing
  • Pepper Mill Creamy Caesar Dressing
  • Caesar Dressing served at Costco Service Deli
  • Caesar Dressing served at Costco Food Court
  • Hidden Valley, Buttermilk Ranch
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They graduated from Stanford. Due to AI, they can’t find a job

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They graduated from Stanford. Due to AI, they can’t find a job

A Stanford software engineering degree used to be a golden ticket. Artificial intelligence has devalued it to bronze, recent graduates say.

The elite students are shocked by the lack of job offers as they finish studies at what is often ranked as the top university in America.

When they were freshmen, ChatGPT hadn’t yet been released upon the world. Today, AI can code better than most humans.

Top tech companies just don’t need as many fresh graduates.

“Stanford computer science graduates are struggling to find entry-level jobs” with the most prominent tech brands, said Jan Liphardt, associate professor of bioengineering at Stanford University. “I think that’s crazy.”

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While the rapidly advancing coding capabilities of generative AI have made experienced engineers more productive, they have also hobbled the job prospects of early-career software engineers.

Stanford students describe a suddenly skewed job market, where just a small slice of graduates — those considered “cracked engineers” who already have thick resumes building products and doing research — are getting the few good jobs, leaving everyone else to fight for scraps.

“There’s definitely a very dreary mood on campus,” said a recent computer science graduate who asked not to be named so they could speak freely. “People [who are] job hunting are very stressed out, and it’s very hard for them to actually secure jobs.”

The shake-up is being felt across California colleges, including UC Berkeley, USC and others. The job search has been even tougher for those with less prestigious degrees.

Eylul Akgul graduated last year with a degree in computer science from Loyola Marymount University. She wasn’t getting offers, so she went home to Turkey and got some experience at a startup. In May, she returned to the U.S., and still, she was “ghosted” by hundreds of employers.

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“The industry for programmers is getting very oversaturated,” Akgul said.

The engineers’ most significant competitor is getting stronger by the day. When ChatGPT launched in 2022, it could only code for 30 seconds at a time. Today’s AI agents can code for hours, and do basic programming faster with fewer mistakes.

Data suggests that even though AI startups like OpenAI and Anthropic are hiring many people, it is not offsetting the decline in hiring elsewhere. Employment for specific groups, such as early-career software developers between the ages of 22 and 25 has declined by nearly 20% from its peak in late 2022, according to a Stanford study.

It wasn’t just software engineers, but also customer service and accounting jobs that were highly exposed to competition from AI. The Stanford study estimated that entry-level hiring for AI-exposed jobs declined 13% relative to less-exposed jobs such as nursing.

In the Los Angeles region, another study estimated that close to 200,000 jobs are exposed. Around 40% of tasks done by call center workers, editors and personal finance experts could be automated and done by AI, according to an AI Exposure Index curated by resume builder MyPerfectResume.

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Many tech startups and titans have not been shy about broadcasting that they are cutting back on hiring plans as AI allows them to do more programming with fewer people.

Anthropic Chief Executive Dario Amodei said that 70% to 90% of the code for some products at his company is written by his company’s AI, called Claude. In May, he predicted that AI’s capabilities will increase until close to 50% of all entry-level white-collar jobs might be wiped out in five years.

A common sentiment from hiring managers is that where they previously needed ten engineers, they now only need “two skilled engineers and one of these LLM-based agents,” which can be just as productive, said Nenad Medvidović, a computer science professor at the University of Southern California.

“We don’t need the junior developers anymore,” said Amr Awadallah, CEO of Vectara, a Palo Alto-based AI startup. “The AI now can code better than the average junior developer that comes out of the best schools out there.”

To be sure, AI is still a long way from causing the extinction of software engineers. As AI handles structured, repetitive tasks, human engineers’ jobs are shifting toward oversight.

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Today’s AIs are powerful but “jagged,” meaning they can excel at certain math problems yet still fail basic logic tests and aren’t consistent. One study found that AI tools made experienced developers 19% slower at work, as they spent more time reviewing code and fixing errors.

Students should focus on learning how to manage and check the work of AI as well as getting experience working with it, said John David N. Dionisio, a computer science professor at LMU.

Stanford students say they are arriving at the job market and finding a split in the road; capable AI engineers can find jobs, but basic, old-school computer science jobs are disappearing.

As they hit this surprise speed bump, some students are lowering their standards and joining companies they wouldn’t have considered before. Some are creating their own startups. A large group of frustrated grads are deciding to continue their studies to beef up their resumes and add more skills needed to compete with AI.

“If you look at the enrollment numbers in the past two years, they’ve skyrocketed for people wanting to do a fifth-year master’s,” the Stanford graduate said. “It’s a whole other year, a whole other cycle to do recruiting. I would say, half of my friends are still on campus doing their fifth-year master’s.”

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After four months of searching, LMU graduate Akgul finally landed a technical lead job at a software consultancy in Los Angeles. At her new job, she uses AI coding tools, but she feels like she has to do the work of three developers.

Universities and students will have to rethink their curricula and majors to ensure that their four years of study prepare them for a world with AI.

“That’s been a dramatic reversal from three years ago, when all of my undergraduate mentees found great jobs at the companies around us,” Stanford’s Liphardt said. “That has changed.”

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