The Justice Department filed a lawsuit against Ticketmaster and its parent company, Live Nation Entertainment, alleging that they have an illegal monopoly on live events in the United States. The lawsuit, filed in federal court in Manhattan, involves 30 state and district attorneys general who are seeking to dismantle the monopoly that they believe is harming competition and driving up prices for fans. Attorney General Merrick Garland stated that it is time to break up Live Nation-Ticketmaster and restore competition and innovation in the entertainment industry.
The government accuses Live Nation of using tactics, including threats and retaliation, to control virtually every aspect of the industry, from concert promotion to ticketing, and suffocate competition. Assistant Attorney General Jonathan Kanter emphasized that live music should not be limited to those who can afford the Ticketmaster tax. Live Nation responded to the lawsuit by denying that it is violating antitrust laws and stating that the lawsuit won’t address fans’ concerns about ticket prices, service fees, and access to popular shows.
The Justice Department alleges that Live Nation’s anti-competitive practices include using long-term contracts to prevent venues from choosing rivals, blocking venues from using multiple ticket sellers, and threatening venues with financial retaliation if they do not choose Ticketmaster. The department cited a 2021 incident where Live Nation threatened to financially retaliate against a firm if one of its portfolio companies continued to compete with Live Nation for artist promotion contracts. Legal experts believe the Justice Department has a strong case against Live Nation and expect the company to push back by shifting blame elsewhere.
The complaint suggests that breaking up Live Nation and Ticketmaster could help lower ticket prices, give artists more agency in choosing venues, and promote the success of smaller promoters. Ticketmaster, the world’s largest ticket seller across live music, sports, and theater, distributes over 620 million tickets annually and controls a significant portion of the market share for major concert venues in the U.S. Live Nation’s presence in the industry has expanded over the past decade, raising concerns about lack of competition and high ticket prices.
Ticketmaster has faced criticism for its actions in the past, including a site crash during a Taylor Swift presale event in 2022 and violations of an agreement with the Justice Department post-merger. The Justice Department’s lawsuit against Live Nation and Ticketmaster reflects the Biden administration’s aggressive antitrust enforcement efforts, which have also targeted tech giants like Apple, Google, and Amazon. The lawsuit seeks to address the issues of competition, pricing, and access in the live events industry and bring about positive changes for fans, artists, and promoters.
