The proposed class action suit filed by a New York ticket buyer against Ticketmaster and Live Nation alleges that consumers are being forced to pay high prices due to the companies’ market power and excessively high fees. The plaintiff, Abraham Leifer, claims that Live Nation’s monopoly, established since its acquisition of Ticketmaster in 2010, has impacted all consumers of tickets at major concert venues. The lawsuit argues that Live Nation’s alleged monopoly power has pushed up prices in the secondary ticket sale market by limiting competition among resale sites and passing on high fees.
The suit, filed in Manhattan, coincided with the U.S. government also suing Ticketmaster and Live Nation for similar antitrust issues. The Department of Justice alleged that Live Nation and its subsidiaries have used various tactics to eliminate competition and monopolize markets, resulting in fans paying more and artists having fewer options of where to play. Live Nation has pushed back against these claims, stating that it is absurd to categorize them as monopolies and attributing the rise in ticket costs to factors such as increasing production costs, artist popularity, and online ticket scalping. Live Nation has also criticized resale sites, claiming that both artists and consumers are cheated by the high resale prices on these platforms.
The merger of Live Nation and Ticketmaster in 2010 raised concerns about potential monopolistic practices, with the Justice Department being promised at the time that ticketing competition would be preserved and a monopoly would not be created. However, the DOJ claimed in 2019 that the company had repeatedly violated these agreements. Live Nation’s alleged use of long-term ticket contracts and restrictions on venues working with multiple ticketers were cited as tactics to monopolize the market. The lawsuit filed by the DOJ and 29 states highlighted the detrimental impact on fans and artists, with Attorney General Merrick Garland emphasizing the importance of maintaining competition in the live events market.
Following renewed criticism in 2022 after Ticketmaster canceled the general sale of tickets for Taylor Swift’s Eras Tour, Live Nation President Joe Berchtold attributed the issue to scalpers, bots, and a cyberattack. Live Nation has continued to defend its practices, stating that there is more competition in the live events market than ever before. The ongoing legal battles and public scrutiny surrounding Ticketmaster and Live Nation underscore the challenges in balancing market power with consumer interests and maintaining fair competition in the ticketing industry. For consumers like Abraham Leifer, the hope is that these lawsuits will lead to increased transparency and accountability from these industry giants.
