U.S. Justice Department seeks breakup of Live Nation and Ticketmaster in antitrust suit

The Justice Department has filed a lawsuit seeking to dismantle Live Nation, the parent company of Ticketmaster.

This suit, submitted in the Southern District of New York with the support of attorneys general from 29 states plus Washington, D.C., claims that Live Nation has engaged in practices detrimental to artists, fans, venues, and startups attempting to enter the market.

According to the lawsuit, Live Nation directly manages over 400 musical artists, controls 60% of concert promotions at major venues, and through Ticketmaster, commands roughly 80% or more of ticketing at major concert venues, along with a significant portion of the resale market. Attorney General Merrick Garland has stated that Live Nation’s monopolistic behavior has resulted in higher fees for fans, fewer opportunities for artists, and reduced competition for smaller promoters and venue operators.

Among the accusations against Live Nation are claims that it has collaborated with Oak View Group to steer clients toward exclusive Ticketmaster agreements. It is also accused of threatening retaliation against competitors in the concert promotion business and signing long-term exclusionary deals that prevent venues from seeking alternative management and ticketing options. Furthermore, Ticketmaster often becomes the default ticketing platform due to Live Nation’s control over many venues.

Live Nation has dismissed the Justice Department’s allegations as “baseless,” asserting that the lawsuit will not address the real issues affecting ticket prices, service fees, and access to shows. The company claims that competition has already eroded Ticketmaster’s market share and profit margin over the past decade. It also argues that the lawsuit overlooks other factors worsening the live entertainment and ticket-buying experience, such as rising production costs and online scalping.

This legal action against Live Nation is part of a broader antitrust push under President Joe Biden, who has emphasized the need to combat monopolies. In July 2021, Biden signed an executive order to promote competition, and in March, the Justice Department sued Apple over alleged monopoly practices in the smartphone market.

The controversy surrounding Ticketmaster has been ongoing, with significant backlash following the botched ticket sales for Taylor Swift’s Eras Tour in 2022. The Senate Judiciary Committee subsequently held a hearing on the company’s role in the ticketing industry. Multiple bills have been introduced to address issues facing ticket buyers, including the Transparency in Charges for Key Events Ticketing (TICKET) Act, which requires upfront disclosure of all costs and fees.

Live Nation has expressed support for some ticketing reforms, such as anti-bot legislation and banning speculative ticket sales. Despite the legal challenges, the company maintains that it provides better services and prices than what would be available if its businesses were separated.

Consumer advocacy groups and independent venue representatives have welcomed the Justice Department’s actions, hoping for meaningful changes that benefit fans, artists, and smaller venues. The outcome of this lawsuit could significantly impact the future of the live events industry and address longstanding grievances from consumers and artists alike.