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Latin Music Promoters Allege Zamora Entertainment Drowned Out Competition

Posted  November 5, 2012

Zamora Entertainment, a Latin music promoter, is facing an antitrust lawsuit alleging the company forced artists to use both Zamora venues and event planning services.

Sol Entertainment and Hispanic Radio Broadcast Inc. filed the complaint in the U.S. District Court for the Southern District of Indiana.

Sol operates Tropicana, a music venue in Indianapolis, and Hispanic promotes Latin music events for Sol as well as other smaller venues.

The complaint alleges that anticompetitive behavior began in 2002, when Zamora purchased mid-size music venues in Iowa, Alabama, and Indiana.  Zamora then bought live music event space across 14 other states.  Once Zamora had secured the venues, it was able to schedule the artists it represents to perform at locations owned by Zamora.

Allegedly, not only were artists using Zamora’s promotional services charged high fees if they wished to perform at venues owned by other companies, but Zamora also denied artists working with other promoters access to their venues.

Plaintiffs allege that Tropicana’s business was restrained by Zamora’s tying of promotional and venue service in the music promotion market, in which Zamora was dominant.

Tropicana is one of only two venues that can seat more than 1,500 people for Latin music events in Indianapolis.  However, over the past year, Tropicana hosted just two concerts with more than 1,000 attendees.

Plaintiffs also argue that Zamora’s allegedly anticompetitive behavior has harmed consumers.  Ticket prices have increased from an average of $25.81 to $68.33 since Zamora allegedly acquired its monopoly.

Plaintiffs estimate Zamora has gained a 90 percent share of the live event market for Latin music.  “Now that it has gained control of these markets, Zamora is seeking to expand its empire into the management of artists, the remote sale of concert tickets, the licensing and sale of concert merchandise and other ancillary business,” the complaint stated.

Plaintiffs seek monetary awards for the damages, and an injunction prohibiting Zamora from continuing any anticompetitive behavior.

Tagged in: Antitrust Litigation,