U.S. Ends Ticketmaster Investigation

The Justice Department announced yesterday that it was closing its investigation into complaints of anti-competitive practices by Ticketmaster. The computerized ticketing giant had been under Federal inquiry and the focus of Congressional hearings since last year, when the Seattle grunge band Pearl Jam charged Ticketmaster with cutting the group out of bookings in a dispute over fees.

The decision to close the case without action caught Ticketmaster by surprise, a spokesman in Los Angeles said. There was no immediate reaction from Pearl Jam, either, which just last week canceled its national tour over continued booking problems and then reinstated two dates, one through Ticketmaster.

Word of the decision came in a two-sentence announcement after the regular close of business. It said: "The Department of Justice announced today that it has informed Ticketmaster Holdings Group Inc., that it is closing its antitrust investigation into that firm's contracting practices. The department will continue to monitor competitive developments in the ticketing industry."

There was no further explanation of what, if anything, the inquiry had turned up and why it was ending. In 1991, the Justice Department approved Ticketmaster's acquisition of its major competitor, Ticketron, creating what is now an industry colossus that sells more than $1 billion in tickets annually.

The investigation began after Pearl Jam charged in May 1994 that efforts to price its tickets under $20 were being undermined by Ticketmaster's high markups. Ticketmaster countered that the price could be kept low if the band cut its share. But with Ticketmaster dominating sales of some two-thirds of the 10 million seats in the large arenas, Pearl Jam said it was stymied in arranging alternative sales. The band charged that it was being boycotted by Ticketmaster, an allegation raised by the band members Jeff Ament and Stone Grossard last July in hearings of the House Government Operations subcommittee.