LOS ANGELES - Both U.S. and Canadian governments have imposed major conditions upon Live Nation and Ticketmaster in approving the companies' merger.

Shares in both companies jumped in trading Monday after reports surfaced earlier that the merger would be approved.

Included in the settlement is a requirement that Ticketmaster would have to license its ticketing software to competitor AEG and sell its subsidiary Paciolan to Comcast Spectacor.

The conditions would result in two large competitors - AEG and Comcast Spectacor - that would vie for ticketing contracts with the merged entity of Live Nation and Ticketmaster.

The merged company would also be under a 10-year court order prohibiting it from retaliating against venues that choose to sign ticket-selling contracts with competitors.

The Canadian Competition Bureau announced the conditions on Monday, after working with the U.S. Department of Justice on the specifics.

"The agreement strengthens competition by providing rival companies with the tools they need to compete more effectively against Ticketmaster," said commissioner Melanie Aitken said in a release.

Ticketmaster, based in West Hollywood, Calif., is the world's largest seller of tickets to live concerts and other entertainment events. It also owns an artist management company, Front Line Management, and a ticket-reselling company called TicketsNow.com.

Live Nation, based in Los Angeles, is the largest U.S. concert producer. It also owns entertainment venues and in January launched its own ticket-selling business, which currently competes with Ticketmaster.

In the U.S., Assistant Attorney General Christine Varney said that the merger would have the effect of lowering ticket prices.

Varney said the deal as proposed would have been "anticompetitive."

"It's going to benefit competition and benefit consumers," she said. "Generally when you see robust competition, you would expect to see prices coming down."

Live Nation chief executive Michael Rapino, who will be the CEO of the merged company, said that "with this resolution the playing field is competitive and broader.

"We believe that this merger will now create a more diversified company with a great selling platform for artists and a stronger financial profile that will drive improved shareholder value over the long term."

Ticketmaster CEO Irving Azoff called the resolution "a great win for fans."

Live Nation and Ticketmaster have said the merger will streamline their operations, ensuring their survival. They say music fans also can benefit through lower ticket prices because the merged company can earn money in new ways.

Shares in Ticketmaster rose $2.10, or 16 per cent, to close at $15.40, while shares in Live Nation went up $1.35, or 15 per cent, to $10.51.

-With files from The Canadian Press

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