Canada's Competition Bureau and the U.S. Department of Justice have imposed major concessions upon Live Nation and Ticketmaster in approving the merger by the companies. (Associated Press)

Ticketmaster has agreed to sell its subsidiary ticket seller, Paciolan, to a rival to allay concerns in the U.S. and Canada about a proposed merger with Live Nation.

Ticketmaster had purchased Paciolan in 2008 after months of litigation over the potential breach of antitrust laws.

On Monday, the U.S. Department of Justice and Canada's Competition Bureau approved the merger of Ticketmaster and Live Nation, based on the promise to sell Paciolan within 60 days to either Comcast-Spectacor or another buyer approved of by regulatory authorities in both countries.

As well, the ticket-selling giant has agreed to license its ticketing software to competitor Anschutz Entertainment Group (AEG), the second-largest promoter of live events in Canada and the U.S., and Live Nation's principal competitor.

"This resolution is welcome news for Canadians," Melanie Aitken, a Competition Bureau commissioner, said in a news release. "The agreement strengthens competition by providing rival companies with the tools they need to compete more effectively against Ticketmaster."

Ticketmaster is the largest provider of ticketing services in the world, while Live Nation is the largest promoter of live events globally. Prior to entering into the proposed merger, Live Nation had intended to enter the Canadian ticketing services market.

News that Ticketmaster was merging with its potential competitor, Live Nation, was roundly criticized at the time, with the Consumers' Association of Canada calling it a "disturbing development."

Another condition of the merger is that Ticketmaster cannot retaliate against any venue owner who chooses to use another company's ticketing services, or another company's promotional services.

"The proposed settlement allows for strong competitors to Ticketmaster, allowing concert venues to have more and better choices for their ticketing needs, and provides for anti-retaliation provisions, which will keep the merged company in check," Christine Varney, assistant attorney general in charge of the U.S. Department of Justice's antitrust division, said in a news release.