A class-action lawsuit was filed last Friday (June 2) in a Denver federal court, accusing Clear Channel Communications of breaking anti-trust laws in its dealings in the concert business. The suit specifically named Clear Channel's broadcasting division and its live entertainment spinoff, Live Nation.
According to Reuters, the suit claims that Clear Channel cut back the airplay of artists who played other promoters' shows, and increased the fees for acts "in some cases more than 100 percent of gross sales, in order to exclude competitors from the market."
Just three months ago, the U.S. Justice Department completed an investigation into Clear Channel's concert practices that had latest almost three years, and did not find anything worth taking action against.
The lawsuit claims that the investigation ended because of Clear Channel's spinoff of Live Nation. "However, Live Nation and Clear Channel Communications Inc. both continue to be dominated by the same individuals," says the lawsuit.
The class action suit is asking for an unspecified amount of money on behalf of anyone who purchased concert tickets in Colorado, Utah, New Mexico, Arizona, Kansas, Wyoming and Nebraska between June 1998 and December 2005.