The Justice Department is taking legal action against Live Nation, the parent company of Ticketmaster. A sweeping antitrust lawsuit was filed by the DOJ accusing the company of monopolizing the ticketing of live events in America.
According to the Associated Press, 30 state and district attorneys are seeking to dismantle what they believe is a concert ticketing monopoly that harms artists and fans by driving up ticket prices and fees.
The Justice Department claims in the lawsuit that Live Nation-Ticketmaster took advantage of its relationship with Oak View Group, a competitor turned partner, and used threats of financial retaliation against another company to stifle competition in concert tours, according to People Magazine.
The lawsuit also alleges that Live Nation retaliated against venues that collaborated with non-Live Nation promoters, locking them into lengthy contracts that prevented them from using alternative, potentially cheaper ticketing methods for fans.
Attorney General Merrick Garland stated, as reported by AP, “It’s time for fans and artists to stop paying the price for Live Nation’s monopoly. It is time to restore competition and innovation in the entertainment industry. It is time to break up Live Nation, Ticketmaster. The American people are ready for it.”
Garland made a reference to a Taylor Swift song, “Ready for It,” in his statement, alluding to how ticketing practices for her concert exposed issues with demand and pricing that led to the scrutiny of Live Nation’s business tactics.
Live Nation canceled the general sale of Swift’s tour in November 2022 due to limited ticket availability and overwhelming demand.
According to People Magazine, Live Nation Entertainment responded to the lawsuit by stating, “The DOJ’s lawsuit won’t address fans’ concerns about ticket prices, service fees, and access to popular shows.”
The response continues, “Labeling Ticketmaster as a monopoly may be a public relations victory for the DOJ in the short term, but it will not hold up in court as it overlooks the fundamental economics of live entertainment, including the fact that a significant portion of service fees go to venues, and that competition has steadily reduced Ticketmaster’s market dominance and profits.”
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