The Department of Justice has opened an antitrust investigation and is seeking information from the City of Irvine regarding the city’s potential partnership with concert promoter Live Nation.  

In Nov. 2023, Reuters reported that the Department of Justice was seeking information regarding “any restrictions in the deals Live Nation offers” that would yield “anticompetitive agreements with venues and artists.”  

Last month, the DOJ’s Antitrust Division issued a Civil Investigative Demand to Irvine, specifically requesting all documentation concerning the potential development of a new music venue and “the City’s potential partnership with Live Nation.”   

The CID, filed on Dec. 11, also indicates the DOJ is seeking information regarding violations of the Sherman Act,  which may have led to a potential lessening of competition regarding the city’s ticket sales and concert venue promotion. 

“This civil investigative demand is issued pursuant to the Antitrust Civil Process Act, in the course of an antitrust investigation to determine whether there is, has been, or may be a violation of Section 1 or Section 2 of the Sherman Act, by conduct, activities, or proposed action of the following nature: agreements and other conduct that may reduce ticketing and concert promotions competition,” The CID states. 

For context, the Sherman Act is a 134-year-old antitrust law, defined by the Federal Trade Commission as a criminal law that aims to preserve “free and unfettered competition as the rule of trade.”

The CID established a one-month compliance window for the city of Irvine, which is set for Friday, Jan. 11.

In July of last year, the Great Park Board of Directors voted to terminate its negotiations with Live Nation. 

In a 3-2 vote, board members agreed to a motion suggested by Great Park Director Larry Agran that effectively ended the city’s previous design, construction and operation agreement (DCOA) with Live Nation, and directed Irvine City Manager Oliver Chi to present options for a timeline and process on the steps forward. 

Specifically, in their vote to end negotiations with Live Nation, the directors were seeking a pathway toward an 8,000 to 10,000 seat amphitheater, as a complementary component to the Great Park Framework plan. 

The city is currently researching a third-party operator to manage the yet-to-be-built venue. 

In October, Irvine’s temporary FivePoint Amphitheater, which was managed by Live Nation, closed abruptly due to FivePoint’s residential development in the area. 

At the time, Irvine City Manager Oliver Chi explained that the closure of the temporary venue was out of Irvine’s control. 

Chi explained that the decision to close the 12,000 seat outdoor amphitheater in the Great Park came as the result of the expiration of a private contract between FivePoint Development and Live Nation — a contract that the city of Irvine was not involved with.  

“Live Nation’s agreement with FivePoint to facilitate the temporary FivePoint Amphitheater expired, and given construction-related priorities that FivePoint has to execute, the parties couldn’t facilitate access into the temporary FivePoint Amphitheater to allow for an extension of the temporary venue,” Chi wrote via text message.

Chi did not respond to Irvine Weekly’s request for comment regarding compliance with the CID. 

This a developing story.  

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