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Justice Department Targets Live Nation In Antitrust Lawsuit

By Nithya Bose in Business News, posted April 16, 2024

The US Justice Department is to launch an antitrust lawsuit against Live Nation, the parent company of Ticketmaster, within the next month.

This legal move could drive extensive changes in the concert promotion and ticketing sector, where Live Nation is a dominant player.

The suit is likely to claim Live Nation has used its market position to suppress competition in ticketing live events.

The specific allegations from the Justice Department remain undisclosed at this time.

Live Nation and Ticketmaster merged in 2010, a union that has since drawn scrutiny and criticism for potentially anti-competitive practices.

Critics argue the merger has hampered competition in the ticketing industry, with some suggesting that the solution is to dismantle the company.

Over the years, Live Nation has been accused of imposing excessive ticket fees, providing inadequate customer service, and engaging in other anti-competitive behaviors.

These criticisms have been echoed by lawmakers, regulatory bodies, and state attorneys general.

The case stems from a probe into Live Nation that started in 2022, gaining traction after a major system crash during a presale event for Taylor Swift’s “Eras Tour” in November 2022.

This incident highlighted issues with Ticketmaster's service and further fueled the investigation.

In response to these monopoly accusations, Dan Wall, Live Nation’s head of corporate affairs, defended the company on its website.

He clarified Ticketmaster does not set ticket prices; these are determined by artists and sports teams, driven by high demand.

He also explained that most fees are collected by venues, not Ticketmaster.

Fears were raised in 2010 Live Nation would exploit its position to force venues into exclusive agreements with its ticketing division.

However, Ticketmaster now controls over 80 percent of primary ticket sales for major venues in the US.

The company argues that its market share does not equate to a monopoly, citing intense competition in the sector, particularly in contracts with venues.

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The upcoming lawsuit may also revisit and potentially overturn a settlement reached in 2010 between the DOJ and Live Nation regarding the Ticketmaster merger.

Initially set to expire in 2020, this agreement was extended to 2025 after regulators found Live Nation had coerced venues into using Ticketmaster, violating the original settlement.

The revised settlement includes a clause to prevent Live Nation from threatening venues that choose other ticket providers, with a stipulated penalty of $1 million for each breach.

Additionally, the compliance of Live Nation with this settlement is monitored by the external law firm Kirkland & Ellis.

This lawsuit marks a critical point in the ongoing scrutiny of Live Nation's business practices and their impact on the live event ticketing market.

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