The Justice Department and a group of states are preparing to sue Live Nation Entertainment, the owner of Ticketmaster, for allegedly maintaining a monopoly in the live entertainment industry. The government plans to argue that Live Nation has bolstered its power through Ticketmaster’s exclusive ticketing contracts with concert venues and its dominance over concert tours and other businesses within the industry. This alleged monopoly has resulted in increased prices and fees for consumers and limited innovation in the ticket industry. Additionally, the government will argue that Live Nation’s tours often play at venues where Ticketmaster is the exclusive ticket service and that Live Nation’s artists frequently perform at venues it owns.
Live Nation is a major player in the concert industry, with a reach that far surpasses that of any competitor. The company’s Ticketmaster division alone sells 600 million tickets annually to events worldwide and is estimated to handle ticketing for a large majority of major concert venues in the United States. Lawmakers, fans, and competitors have accused Live Nation of engaging in practices that harm rivals, drive up ticket prices, and fees. A congressional hearing last year, prompted by issues with a Taylor Swift tour presale on Ticketmaster, saw senators from both parties labeling Live Nation as a monopoly.
The company has denied allegations that it sets high prices and fees, attributing responsibility to artists and other parties involved in the industry. The Justice Department has previously allowed Live Nation to acquire Ticketmaster in 2010 with certain conditions, which were later found to have been violated in 2019, leading to modifications and extensions of the agreement. The Justice Department’s current investigation into Live Nation began in 2022, coinciding with increased lobbying efforts by the company, which spent $2.4 million on federal lobbying in 2023.
In response to pressure from the White House, Live Nation announced in June that it would begin showing prices for shows at venues it owns with all charges included, including fees. Additionally, the Federal Trade Commission has proposed a rule to ban hidden fees in the industry. Former chairman of the FTC, Bill Kovacic, stated that a lawsuit against Live Nation would be a rejection of previous antitrust decisions that allowed the company to grow to its current size. He described this as an acknowledgment that earlier policies had failed.
This lawsuit against Live Nation is part of a broader trend of American regulators taking on major companies over antitrust concerns. The Justice Department has also sued Apple and brought cases against Google, while the FTC has filed lawsuits against Amazon and Meta for similar reasons. This legal action against Live Nation represents a significant challenge to the company’s dominant position in the live entertainment industry and could have implications for the future of ticketing practices and pricing in the industry.
