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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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MrBeast company sued over claims of sexual harassment, firing a new mom

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MrBeast company sued over claims of sexual harassment, firing a new mom

A former female staffer who worked for Beast Industries, the media venture behind the popular YouTube channel MrBeast, is suing the company, alleging she was sexually harassed and fired shortly after she returned from maternity leave.

The employee, Lorrayne Mavromatis, a Brazilian-born social media professional, alleges in a lawsuit she was subjected to sexual harassment by the company’s management and demoted after she complained about her treatment. She said she was urged to join a conference call while in labor and expected to work during her maternity leave in violation of the Family and Medical Leave Act, according to the federal complaint filed Wednesday in the U.S. District Court for the Eastern District of North Carolina.

“This clout-chasing complaint is built on deliberate misrepresentations and categorically false statements, and we have the receipts to prove it. There is extensive evidence — including Slack and WhatsApp messages, company documents, and witness testimony — that unequivocally refutes her claims. We will not submit to opportunistic lawyers looking to manufacture a payday from us,” Gaude Paez, a Beast Industries spokesperson, said in a statement.

Jimmy Donaldson, 27, began MrBeast as a teen gaming channel that soon exploded into a media company worth an estimated $5 billion, with 500 employees and 450 million subscribers who watch its games, stunts and giveaways.

Mavromatis, who was hired in 2022 as its head of Instagram, described a pervasive climate of discrimination and harassment, according to the lawsuit.

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In her complaint, she alleges the company’s former CEO James Warren made her meet him at his home for one-on-one meetings while he commented on her looks and dismissed her complaints about a male client’s unwanted advances, telling her “she should be honored that the client was hitting on her.”

When Mavromatis asked Warren why MrBeast, Donaldson, would not work with her, she was told that “she is a beautiful woman and her appearance had a certain sexual effect on Jimmy,” and, “Let’s just say that when you’re around and he goes to the restroom, he’s not actually using the restroom.”

Paez refuted the claim.

“That’s ridiculous. This is an allegation fabricated for the sole purpose of sparking headlines,” Paez said.

Mavromatis said she endured a slate of other indignities such as being told by Donaldson that she “would only participate in her video shoot if she brought him a beer.”

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“In this male-centric workplace, Plaintiff, one of the few women in a high-level role, was excluded from otherwise all-male meetings, demeaned in front of colleagues, harassed, and suffered from males be given preferential treatment in employment decisions,” states the complaint.

When Mavromatis raised a question during a staff meeting with her team, she said a male colleague told her to “shut up” or “stop talking.”

At MrBeast headquarters in Greenville, N.C., she said male executives mocked female contestants participating in BeastGames, “who complained they did not have access to feminine hygiene products and clean underwear while participating in the show.”

In November 2023, Mavromatis formally complained about “the sexually inappropriate encounters and harassment, and demeaning and hostile work environment she and other female employees had been living and experiencing working at MrBeast,” to the company’s then head of human resources, Sue Parisher, who is also Donaldson’s mother, according to the suit.

In her complaint, Mavromatis said Beast Industries did not have a method or process for employees to report such issues either anonymously or to a third party, rather employees were expected to follow the company’s handbook, “How to Succeed In MrBeast Production.”

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In it, employees were instructed that, “It’s okay for the boys to be childish,” “if talent wants to draw a dick on the white board in the video or do something stupid, let them” and “No does not mean no,” according to the complaint.

Mavromatis alleges that she was demoted and then fired.

Paez said that Mavromatis’s role was eliminated as part of a reorganization of an underperforming group within Beast Industries and that she was made aware of this.

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Heidi O’Neill, Formerly of Nike, Will Be New Lululemon’s New CEO

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Heidi O’Neill, Formerly of Nike, Will Be New Lululemon’s New CEO

Lululemon, the yoga pants and athletic clothing company, has hired a former executive from a rival, Nike, as its new chief executive.

Heidi O’Neill, who spent more than 25 years at Nike, will take the reins and join Lululemon’s board of directors on Sept. 8, the company announced on Wednesday.

The leadership change is happening during a tumultuous time for Lululemon, which had grown to $11 billion in revenue by persuading shoppers to ditch their jeans and slacks for stretchy leggings. But lately, sales have declined in North America amid intense competition and shifting fashion trends, with consumers favoring looser styles rather than the form-fitting silhouettes for which Lululemon is best known.

“As I step into the C.E.O. role in September, my job will be to build on that foundation — to accelerate product breakthroughs, deepen the brand’s cultural relevance, and unlock growth in markets around the world,” Ms. O’Neill, 61, said in a statement.

Lululemon, based in Vancouver, British Columbia, has also been entangled in a corporate power struggle over the company’s future. Its billionaire founder, Chip Wilson, has feuded with the board, nominated independent directors and criticized executives.

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Lululemon’s previous chief executive, Calvin McDonald, stepped down at the end of January as pressure mounted from Mr. Wilson and some investors. One activist investor, Elliott Investment Management, had pushed its own chief executive candidate, who was not selected.

The interim co-chiefs, Meghan Frank and André Maestrini, will lead the company until Ms. O’Neill’s arrival, when they are expected to return to other senior roles. The pair had outlined a plan to revive sales at Lululemon, promising to invest in stores, save more money and speed up product development.

“We start the year with a real plan, with real strategies,” Mr. Maestrini said in an interview this year. “We make sure decisions are made fast.”

Lululemon said last month that it would add Chip Bergh, the former chief executive of Levi Strauss, to its board to replace David Mussafer, the chairman of the private equity firm Advent International, whom Mr. Wilson had sought to remove.

Ms. O’Neill climbed the organizational chart at Nike for decades, working across divisions including consumer sports, product innovation and brand marketing, and was most recently its president of consumer, product and brand. She left Nike last year amid a shake-up of senior management that led to the elimination of her role.

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Analysts said Ms. O’Neill would be expected to find ways to energize Lululemon’s business and reset the company’s culture in order to improve performance.

“O’Neill is her own person who will come with an agenda of change,” said Neil Saunders, the managing director of GlobalData, a data analytics and consulting company. “The task ahead is a significant one, but it can be undertaken from a position of relative stability.”

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Angry Altadena residents ask officials to halt Edison’s undergrounding work

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Angry Altadena residents ask officials to halt Edison’s undergrounding work

Eaton wildfire survivors’ anger about Southern California Edison’s burying of electric wires in Altadena boiled over Tuesday with residents calling on government officials to temporarily halt the work.

In a letter to the Los Angeles County Board of Supervisors, more than 120 Altadena residents and the town’s council wrote that they had witnessed “manifest failures” by Edison in recent months as it has been tearing up streets and digging trenches to bury the wires.

The residents cited the unexpected financial cost of the work to homeowners and possible harm to the town’s remaining trees. They also pointed out how the work will leave telecommunication wires above ground on poles.

“The current lack of coordination is compounding the stress of a community still reeling from the Eaton Fire, and risks causing further irreparable harm,” the residents wrote.

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The council voted unanimously Tuesday night to send the letter.

Scott Johnson, an Edison spokesman, said Wednesday that the company has been working to address the concerns, including by looking for other sources of funds to help pay for the homeowners’ costs.

“We recognize this community has already faced a number of challenges,” he said.

Johnson said the company will allow homeowners to keep existing overhead lines connecting their homes to the grid if they are worried about the cost.

Edison’s crews, Johnson said, have also been trained to use equipment that avoids roots and preserves the health of trees.

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The utility has said that burying the wires as the town rebuilds thousands of homes destroyed in the fire will make the electrical grid safer and more reliable.

But anger has grown as work crews have shown up unexpectedly and residents learned they’re on the hook to pay tens of thousands of dollars to connect their homes to the buried lines.

Residents have also found the crews digging under the town’s oak and pine trees that survived last year’s fire. Arborists say the trenches could destroy the roots of some of the last remaining trees and kill them.

Amy Bodek, the county’s regional planning director, recently warned Edison that a government ordinance protects oak trees and that “utility trenching is not exempt from these requirements.”

Residents have also pointed out that in much of Altadena, the telecom companies, including Spectrum and AT&T, have not agreed to bury their wires in Edison’s trenches. That means the telecom wires will remain on poles above ground, which residents say is visually unappealing.

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“While our community supports the long-term benefits of moving utilities underground, the current execution by SCE is placing undue financial and planning burdens on homeowners, causing irreparable harm to our heritage tree canopy, and proceeding without adequate local oversight,” the residents wrote.

They want the project halted until the problems are addressed.

Edison announced last year that it would spend as much as $925 million to underground and rebuild its grid in Altadena and Malibu, where the Palisades fire caused devastation.

The work — which costs an estimated $4 million per mile — will earn the utility millions of dollars in profits as its electric customers pay for it over the next decades.

Pedro Pizarro, chief executive of Edison International, told Gov. Gavin Newsom last year that state utility rules would require Altadena and Malibu homeowners to pay to underground the electric wire from their property line to the panel on their house. Pizarro estimated it would cost $8,000 to $10,000 for each home.

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But some residents, who need to dig long trenches, say it will cost them much more.

“We are rebuilding and with the insurance shortfall, our finances are stretched already,” Marilyn Chong, an Altadena resident, wrote in a comment attached to the letter. “Incurring the additional burden of financing SCE’s infrastructure is not something we can or should have to do.”

Other fire survivors complained of Edison’s lack of planning and coordination with residents.

“I’ve started rebuilding, and apparently there won’t be underground power lines for me to connect with in time when my house will be done,” wrote Gail Murphy. “So apparently I’m supposed to be using a generator, and for how long!?”

Johnson said the company has set up a phone line for people with concerns or questions. That line — 1-800-250-7339 — is answered Monday through Saturday, he said.

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Residents can also go to Edison’s office in Altadena at 2680 Fair Oaks Avenue. The office is open Monday to Friday from 8 to 4:30.

It’s unclear if the Eaton fire would have been less disastrous if Altadena’s neighborhood power lines had been buried.

The blaze ignited under Edison’s towering transmission lines that run through Eaton Canyon. Those lines carry bulk power through the company’s territory. In Altadena, Edison is burying the smaller distribution lines, which carry power to homes.

The government investigation into the cause of the fire has not yet been released. Pizarro has said that a leading theory is that a century-old transmission line, which had not carried power for 50 years, somehow re-energized to spark the blaze.

The fire killed at least 19 people and destroyed more than 9,400 homes and other structures.

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