The Justice Department recently filed a lawsuit against Ticketmaster and Live Nation, aiming to potentially break up Live Nation Entertainment to allow more competition in the ticket-selling market. Ticketmaster currently controls 70% of the market, leading to surging ticket prices for concertgoers, sports fans, and theater patrons. The lawsuit accuses Live Nation of engaging in practices that have allowed it to maintain a stronghold over the live music scene, such as using long-term contracts and blocking venues from using multiple ticket sellers.
The uproar caused by fans attempting to buy tickets for Taylor Swift’s Eras Tour in 2022 through Ticketmaster highlighted issues within the U.S. ticketing system. State attorneys general and the Justice Department’s investigation into Ticketmaster were triggered by the social media outcry and Senate hearing resulting from the problems encountered by Swifties. The widespread demand for tickets unveiled Ticketmaster’s domination in the market, potentially aiding the Justice Department in building its case against the company.
Ticket prices have skyrocketed for various reasons, including a surge in demand post-COVID-19 and Live Nation’s reported increase in worldwide ticket sales for the top 100 tours in 2023. The average ticket price for the top tours in 2023 was $122.84, a 31% increase compared to 2018. Service fees and ticket resales further inflate prices, sometimes reaching thousands of dollars. The Justice Department’s lawsuit alleges that Live Nation Entertainment’s dominance exacerbates ticket markups and controls a significant portion of the market.
Live Nation and Ticketmaster have consistently denied allegations of operating in a monopolistic manner and claim they are not responsible for high ticket prices. They argue that the DOJ’s lawsuit will not address fans’ concerns about ticket prices, service fees, and access to popular shows and events. Service fees are stated to go to concert venues, and Ticketmaster claims that outside competition has steadily reduced its market share despite the DOJ’s accusations of monopolistic behavior.
The lawsuit against Ticketmaster and Live Nation marks the beginning of a potentially lengthy trial process, which could take years to resolve if not dismissed. The trial is expected to commence after a year, followed by months of arguments before a ruling is issued by a judge. If the judge orders a breakup of Live Nation Entertainment, an appeal is likely to further prolong the legal proceedings. The Justice Department has initiated several other lawsuits against big companies accused of illegal monopolies, including Apple, Google, and Amazon, further underscoring the ongoing battle against monopolistic practices in various industries.
