The Justice Department has filed a lawsuit against Live Nation Entertainment, accusing the company of being an illegal monopoly that has harmed competition, hindered innovation, and resulted in higher ticket prices and fees for consumers. The government is calling for Live Nation to be broken up. However, Live Nation has denied these allegations, stating that it faces more competition than ever and that the lawsuit will not reduce ticket prices or service fees. The lawsuit drew on internal communications, including emails from Live Nation’s CEO, Michael Rapino, and other industry figures, to support its claims.
One instance cited in the lawsuit involves a concert featuring Kanye West and Drake that was organized by Australian ticketing and promotions company TEG. Live Nation allegedly threatened commercial retaliation against the private equity firm Silver Lake, which had investments in TEG and Oak View Group. Live Nation reportedly blocked tickets from being sold through StubHub, leading to hundreds of customers being refused entry to the event. Rapino expressed displeasure with Silver Lake’s investment in ticketing and promotions and pushed for TEG to be sold. In response, Live Nation stated that they simply frustrated TEG’s attempts to put tickets on the secondary market in violation of their exclusive rights over primary tickets.
The government also accused Live Nation of colluding with Oak View Group to avoid competing with each other and maintain Live Nation’s dominance in the industry. Oak View Group is alleged to have acted as an agent for Live Nation, enforcing threats and decisions on behalf of the larger company. Email communications from 2016 suggested that Oak View Group backed down from promoting shows with artists that Live Nation worked with. Live Nation has denied these accusations, stating that Oak View Group has never been a concert promoter and that the portrayal of their agreement as anti-competitive is false.
In another incident, the government highlighted the abrupt switch of Barclays Center in Brooklyn from SeatGeek to Ticketmaster as its ticketing partner in 2023. Live Nation allegedly denied the venue access to its biggest tours following the switch, leading to a reduction in Live Nation-promoted shows at the venue. Live Nation denied retaliating against Barclays Center for choosing SeatGeek as its ticketing provider. The government quoted an email from a senior Live Nation executive to the venue’s CEO, suggesting that they should consider a broader relationship with Live Nation.
The government further alleged that Live Nation has acquired several companies with the aim of eliminating rivals in concert promotion and ticketing. Examples included the acquisition of United Concerts in Utah, AC Entertainment in Tennessee, and Frank Productions in Wisconsin. Live Nation reportedly converted these companies to use Ticketmaster exclusively, leading to the closure of regional ticketing companies. Live Nation defended these acquisitions, stating that the deals were made for strategic reasons and were not anti-competitive.
Live Nation has pushed back against the government’s claims, stating that the lawsuit is based on hypocritical accusations and a disregard for facts. The company has emphasized that it faces strong competition in the industry and that the allegations will not result in lower ticket prices or service fees for consumers. The lawsuit has brought to light behind-the-scenes practices in the concert industry and highlighted the complex relationships between major players like Live Nation, rival companies, and entertainment venues.
