U.S. Department of Justice files lawsuit seeking breakup living nation, Ticketmaster parent company allegedly violated antitrust laws.
The U.S. Justice Department launched an investigation in 2022 into whether Live Nation maintained a monopoly in the ticketing industry, intensifying amid fan complaints after ticket sales for Taylor Swift’s Eras tour failed , which was filed Thursday by a coalition of 30 states.
Attorney General Merrick Garland said in a statement: “We allege that Live Nation relied on illegal, anticompetitive conduct to exert monopolistic control over the U.S. live events industry, harming fans, artists, small promoters and venue operators. benefits. “The result is fans paying more, artists having fewer opportunities to hold concerts, smaller promoters being squeezed out, and venues having fewer real ticketing options. It’s time to spin off Live Nation-Ticketmaster. “
Shares of Live Nation fell 5% Thursday morning.
Live Nation said in a statement The Justice Department’s monopoly accusations are “ridiculous.”
“The DOJ complaint attempts to paint Live Nation and Ticketmaster as the cause of fan frustration with the live entertainment industry. It blames high ticket prices on concert promoters and ticketing companies (neither of which controls ticket prices). It ignores “From rising production costs to artists’ popularity to 24/7 online ticket scalping, it shows the public is willing to pay,” said Dan Wall, Live Nation’s executive vice president of corporate and regulatory affairs. Far higher than the main ticket price.
Live Nation and Ticketmaster merged in 2010 to become the dominant entity in the live events industry. The company operates and manages ticket sales for live entertainment shows worldwide and also owns and operates more than 265 entertainment venues in North America, including more than 60 of the top 100 amphitheaters, according to the Justice Department lawsuit.
Through Ticketmaster, Live Nation controls approximately 80% or more of major concert ticketing at major concert venues, the complaint alleges.
The Justice Department filed a lawsuit in the U.S. District Court for the Southern District of New York alleging that Live Nation maintains a self-reinforcing business model by collecting fees and revenue from concert fans and sponsorships, then using those fees and revenue to lock artists into exclusivity . Promotional agreements give artists access to major entertainment venues across the country. Live Nation then used that dominance to lock new concert venues into long-term exclusive contracts, starting the cycle all over again, the lawsuit alleges.
Live Nation has also been accused of threatening financial retaliation against potential competitors and venues that work with competitors; strategically acquiring smaller regional competitive threats; and leveraging its relationship with venue partner Oak View Group to steer the latter’s contracts away Give to Ticketmaster and block the competition for concert promotions.
Live Nation made headlines last year when demand for Taylor Swift concert tickets surged from 14 million users, including bots, causing site outages and slow queues. A Senate subcommittee issued subpoenas to Live Nation and Ticketmaster in November 2023, following a months-long investigation into excessive ticket prices for Swift’s Eras tour.
The high prices for U.S. shows have led to large numbers of fans seeking out tickets for Swift’s tour dates in other countries, which are often cheaper even after traveling on international flights.
“Music fans in the United States are denied opportunities for ticketing innovation and forced to use outdated technology while paying more for tickets than fans in other countries,” the U.S. Department of Justice said in a news release.
Live Nation said Thursday it does not benefit from monopoly pricing and said Ticketmaster’s service fees are “no higher and often lower than elsewhere.” The company noted that its overall net profit margin is at the low end of S&P 500 companies.
Live Nation argued that the lawsuit would not reduce ticket prices or service fees. The artist team allegedly sets the price for their tickets and venues and keeps a majority of the ticket fees.
“Some people call it ‘antitrust,’ but really it’s just anti-business,” Live Nation’s Wall said. “There is no legal basis for objecting to vertical integration on these grounds.”
Live Nation earlier this month Report calls it ‘biggest first season ever’ Its first-quarter revenue grew 21% compared with the same period last year.
The company also came under public scrutiny last year over transparency issues surrounding hidden fees in ticket pricing.
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