The Justice Department and a group of states plan to sue Live Nation to curb its dominance in the concert and ticketing industry.
This move seeks to address concerns the entertainment giant’s monopoly stifles competition.
The lawsuit, expected to be filed in a New York federal court, will request significant changes to Live Nation’s business practices.
It includes potentially reversing the 2010 merger with Ticketmaster.
The merger, approved during the Obama administration despite antitrust concerns, has allowed Live Nation to control a substantial portion of the live entertainment market.
DOJ’s lawsuit will challenge several practices, particularly Ticketmaster’s exclusive ticketing contracts with major venues.
These contracts, often lasting three to five years, frequently involve lucrative financial advances that entice venues into long-term agreements.
In a recent essay on Live Nation’s website, Dan Wall, the head of corporate affairs, defended the company’s position.
He argued Ticketmaster does not set ticket prices; instead, prices are determined by artists and teams based on market demand and supply.
Wall also noted that most fees go to the venues, not Ticketmaster.
Lawsuit could reverse Ticketmaster merger
DOJ’s investigation into Live Nation began in 2022 and intensified after Ticketmaster’s system crashed during a presale event for Taylor Swift’s “Eras Tour.”
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This incident highlighted exorbitant fees, poor customer service, and anti-competitive practices, drawing criticism from lawmakers, regulators, and state attorneys general.
Live Nation’s market influence is significant, with at least a 50 percent share in concert promotion and over 80 percent control of primary ticket sales for major US venues.
Live Nation executives, including CFO Joe Berchtold, argue there is no strong connection between the company’s corporate structure and the alleged unlawful conduct.
Berchtold said a breakup is “only available where there is a strong connection between the corporate structure and the company’s ability to engage in the allegedly unlawful conduct.
“The conduct under scrutiny falls either within our ticketing segment or our concert segment and not across those segments.”
Competitors have long urged the DOJ to dismantle Live Nation, citing its ability to dominate the market by leveraging its control over artists, tours, ticketing systems, and venues.
