(FiveNation.com)- On Monday, the Department of Justice revealed that Ari Emanuel, the CEO of Endeavor Group Holdings, was forced to step down from the board of directors of Live Nations by the agency. In a press release, the Justice Department said that Mark Shapiro, the president of Endeavor, stepped down from his position alongside Emanuel after concerns were expressed over their “illegal interlocking directorate.”
Specifically, the department said that the setup allowed an individual to serve as the director and officer of two companies.
Emanuel officially joined Live Nation in 2007 after founding the Endeavor Group, which is an entertainment company, back in 1995. The company represented some of the biggest names in show business and entertainment, including wrestler Dwayne Johnson – better known as “The Rock.”
Endeavor is a long-established business entity, but it didn’t go public until April this year. The company first appeared n the market with a valuation of $10 billion, and the Department of Justice stepped in over concerns about its official setup.
The Justice Department said that the fact that both Endeavor and Live Nation have subsidiary companies that sell tickets to their live events indicated a kind of conflict of interest. And it’s not the first time that concerns like this have been raised, either.
Democrats in Congress said in April that a merger with Ticketmaster back in 2010 could have been an antitrust issue, effectively creating a monopoly for online ticket sales.
Issues like this are becoming more of a hot topic as members of Congress battle with Big Tech on the issue of technology convergence. Democrats continue to enjoy the benefits of Big Tech silencing conservative opponents, but the issue of big tech companies buying up their competitors is something that legislators just cannot ignore.
Assistant Attorney General Richard Powers announced in a statement that the resignations of the two officials mean that Live Nation and Endeavor will not be connected and will compete against one another independently. He added the executives cannot hold board positions on competing companies.
If only Big Tech companies would be so compliant…