DOJ sues to break up Live Nation, Ticketmaster ‘monopoly’

The U.S. Department of Justice filed a lawsuit against Live Nation and Ticketmaster alleging the parent company and its wholly-owned subsidiary constitute an illegal monopoly.

Regulators blame the ticket brokers for blocking competition and controlling pricing on live performances.

“The result is that fans pay more in fees, artists have fewer opportunities to play concerts, smaller promoters get squeezed out, and venues have fewer real choices for ticketing services,” Attorney General Merrick Garland said in a statement. “It is time to break up Live Nation-Ticketmaster.”

Ticketmaster merged with Live Nation in 2010. The combined entity processes 500 million tickets annually in more than 30 countries, according to the Associated Press. Feds claim more than two-thirds of seats at major U.S. concert venues go through Ticketmaster.

The lawsuit filed Thursday in a Manhattan federal court has the support of 30 state and district attorneys general.

Prosecutors accused Live Nation of controlling the ticket market by pressuring venues to enter into long-term exclusive agreements that prohibit them from choosing rival ticketers or using multiple ticket sellers.

Live Nation claims its practices are legal and credited “the quality of the Ticketmaster system” for the company’s success when word of a federal investigation emerged in 2022.

Ticketmaster raised the ire of Swifies and Taylor Swift herself in November 2022 when its system crashed during a presale event for the pop star’s Eras Tour, which has grossed an unprecedented $1.04 billion.

Live Nation Executive Vice President Dan Wall said the DOJ lawsuit won’t reduce ticket costs or service fees and “distracts from real solutions” like allowing artists to cap resale prices.

“The DOJ’s complaint attempts to portray Live Nation and Ticketmaster as the cause of fan frustration with the live entertainment industry,” Wall said. “It blames concert promoters and ticketing companies —neither of which control ticket prices— for high ticket prices.”

Wall blames increasing production costs, artist popularity, and around-the-clock ticket scalping for exploiting “the public’s willingness to pay far more than primary tickets costs” for live entertainment.

The Biden administration has actively targeted companies accused of engaging in illegal monopolies for larger profits including Apple, Google and Amazon.

Deputy Attorney General Lisa Monaco said Thursday’s development reflects the latest efforts by the Justice Department to “combat corporate misconduct.”

With News Wire Services