DOJ Sues Live Nation Over Ticket Monopoly

(Scypre.com) – The Justice Department has filed a lawsuit against Live Nation, the parent company of Ticketmaster, accusing it of hurting consumers and violating antitrust laws by having too much control over the live events industry. This lawsuit, which was filed in the Southern District of New York, is supported by attorneys general from 29 states and Washington, D.C.

Allegations Against Live Nation

The lawsuit claims that Live Nation’s actions harm the entire live entertainment industry, including artists, fans, venues, and new businesses trying to enter the market. It says Live Nation manages over 400 musical artists, controls about 60% of concert promotions at major venues, and through Ticketmaster, controls around 80% of ticketing for major concert venues and a large part of the resale market.

Attorney General’s Statement

Attorney General Merrick Garland stated, “Live Nation relies on unlawful, anticompetitive conduct to exercise its monopolistic control over the live events industry in the United States at the cost of fans, artists, smaller promoters, and venue operators.” He added that this has resulted in higher fees for fans, fewer opportunities for artists to perform, and fewer choices for venues. “It is time to break up Live Nation,” he said.

Specific Accusations

The lawsuit makes several specific accusations against Live Nation:

  • It has worked with Oak View Group to make clients sign exclusive agreements to use Ticketmaster. Oak View Group manages many arenas worldwide.
  • It has tried to eliminate competition in the concert-promotion business through threats and by buying smaller companies it saw as threats.
  • It signs long-term deals with venues that prevent them from using other management companies and ticketing platforms.
  • Ticketmaster becomes the default ticketing platform because Live Nation controls many of the venues where artists want to perform.

Live Nation’s Response

Live Nation called the allegations “baseless” and said the lawsuit would not address issues like ticket prices, service fees, or access to shows. The company argued that calling Ticketmaster a monopoly is incorrect and that competition has reduced Ticketmaster’s market share over the years. They also mentioned that increasing production costs, rising artist popularity, and 24/7 online ticket scalping are the real problems affecting the ticket-buying experience.

Background and Legislative Actions

Ticketmaster has faced criticism for years, but it escalated in 2022 after problems with Taylor Swift’s “Eras Tour” ticket sales. This led to a Senate Judiciary Committee hearing about the company’s role in the ticketing industry. President Joe Biden has made fighting monopolies a key part of his presidency, signing an executive order in 2021 to promote competition. Recently, the House passed the Transparency in Charges for Key Events Ticketing (TICKET) Act, which requires sellers to disclose all costs and fees upfront. Live Nation supported this move and backs other reforms like anti-bot legislation.

Support for the Lawsuit

Rep. Bill Pascrell, who introduced bills to combat deceptive ticketing practices, called the lawsuit a victory for American fans who have been mistreated by Live Nation and Ticketmaster. Over 250 artists have supported the Fans First Act, introduced in the Senate to improve price transparency and consumer protections.

Industry Reactions

Consumer advocacy groups praised the lawsuit, saying it shows the need to protect fans. The National Independent Venue Association hopes the lawsuit will lead to better conditions for fans, artists, and independent venues.

Ticketmaster’s Defense

Ticketmaster says artists and their teams set ticket prices and decide how to sell them. They also claim that service fees, often criticized by fans, are set by venues, which keep most of the proceeds.

This lawsuit marks a significant effort to address concerns about Live Nation and Ticketmaster’s dominance in the live events industry, aiming to create a fairer market for fans, artists, and smaller businesses.