Ticketmaster Shuts Down TradeDesk as Resale Strategy Shifts After FTC Lawsuit
Ticketmaster is set to implement major changes to its ticket resale operations in response to ongoing federal scrutiny. This follows legal actions from the Federal Trade Commission (FTC) and seven state attorneys general alleging anti-competitive behavior and violations of the Better Online Ticket Sales (BOTS) Act.
Key Changes Announced
In a letter dated October 17, Dan Wall, Live Nation’s executive vice president and chief regulatory counsel, revealed the company’s plans. The highlighted changes include:
- Shutting down the TradeDesk platform.
- Restricting users to a single verified account linked to a unique taxpayer ID.
- Implementing new AI-based tools for identity verification.
These measures are intended to combat fraud and enhance the integrity of Ticketmaster’s operations. Wall’s letter strongly disputes the government’s allegations, asserting that Ticketmaster has been proactive in fighting unethical practices within the ticketing ecosystem.
TradeDesk Platform Shutdown
TradeDesk, which has been described as a ticket inventory management tool for professional sellers, will be retired. The FTC previously claimed that this system enabled illicit ticket harvesting. However, Wall refuted this interpretation, emphasizing that TradeDesk functions similarly to existing tools from competitors.
The decision to retire TradeDesk aims to mitigate reputational harm, even though the move may push brokers toward other third-party systems.
Legal Context and BOTS Act Interpretation
The FTC’s case centers on its interpretation of the BOTS Act, established to prohibit automated ticket purchasing. Wall argues that the law targets technological misuse rather than human practices. He notes that resale revenue constitutes less than 2% of Live Nation’s total income, which undermines claims of rampant exploitation.
Investment in Anti-Bot Technologies
Wall’s letter highlights Ticketmaster’s commitment to anti-bot technologies, stating that it effectively blocks 200 million bots daily. The company’s upcoming initiatives also include expanding post-onsale ticket sweeps to identify and nullify fraudulent purchases.
Strategic Response to Regulatory Pressure
The move to dismantle TradeDesk and tighten account practices reflects a strategic response to political pressure rather than a retreat. Observers suggest these alterations align with Ticketmaster’s long-term goals to foster a “FAIR” ticketing framework. This proposed system would enable ticketing companies to control all aspects—from sale to resale—potentially reducing competition in the market.
Critics warn that such consolidation could eliminate vital consumer protections and lead to a closed resale system, fundamentally altering how ticket transactions occur.
Conclusion
As Ticketmaster navigates these regulatory challenges, the long-term impact of these decisions on the ticket resale landscape will remain a focal point for industry stakeholders. The ongoing dialog will undoubtedly shape future practices and the legal framework surrounding ticket sales.
