Photo by Anthony Delanoix on Unsplash
Justice Department Files Suit Against Live Nation
May 23, 2024
The Justice Department is suing Live Nation, the parent company of Ticketmaster. The DOJ filed a sweeping antitrust lawsuit against the company, accusing it of monopolizing the ticketing of live events in America.
The Associated Press reports that 30 state and district attorneys wish to break up what they claim is a monopoly regarding concert ticketing. This type of business model reportedly hurts artists and, most of all, fans, who pay exorbitant ticket prices and fees to see their favorite performers live.
In the filing, the Justice Department claims Live Nation-Ticketmaster “exploited” a relationship with Oak View Group, a competitor-turned-partner. It also says that Live Nation “threatened financial retaliation” against a separate company unless it stopped trying to compete for concert tours, according to People Magazine.
Additionally, the company was accused of retaliation against venues that worked with other promoters outside of Live Nation, locking venues into long contracts so they couldn’t use alternative ticketing methods that might be cheaper for fans.
“It’s time for fans and artists to stop paying the price for Live Nation’s monopoly,” Attorney General Merrick Garland said Thursday, as reported by AP. “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.”
Unknowingly or perhaps on purpose, Garland referenced a Taylor Swift song in his statement, “Ready for It.” Ticketing for her concert drove demand sky high as many of her fans couldn’t get tickets or had to pay thousands of dollars above regular market price due to dynamic pricing by the promoter, prompting the initial inquiry into Live Nation’s business methods.
Ticketmaster canceled the general sale of Swift’s concert tour in November 2022. This was due to limited ticket inventory and even higher demand.
People Magazine shared Live Nation Entertainment’s response to the suit. It reads, “The DOJ’s lawsuit won’t solve the issues fans care about relating to ticket prices, service fees, and access to in-demand shows.”
It continues, “Calling Ticketmaster a monopoly may be a PR win for the DOJ in the short term, but it will lose in court because it ignores the basic economics of live entertainment, such as the fact that the bulk of service fees go to venues, and that competition has steadily eroded Ticketmaster’s market share and profit margin.”
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