Department Of Justice Sues Two Major Ticketing Platforms For Allegedly Monopolizing Live Concert Industry; Details Inside

The Department of Justice (DOJ) has sued Live Nation Entertainment Inc. and its subsidiary, Ticketmaster LLC, facing allegations of monopolizing the live concert market.

By Sakina Kaukawala

Published on May 24, 2024 | 05:05 PM IST | 36.8K

Image Courtesy: Getty Images

In an effort to restore competition and affordability in the live music industry, the Department of Justice (DOJ) has filed a civil antitrust lawsuit against Live Nation Entertainment Inc. and its subsidiary, Ticketmaster LLC as per PEOPLE. The lawsuit, filed on Thursday, May 23, seeks to dissolve the partnership between the two companies, claiming monopolistic practices that harm consumers, artists, and smaller promoters.

Allegations of monopolistic control

According to documents obtained by PEOPLE, the DOJ, along with 30 state and district attorneys general, accuse Live Nation-Ticketmaster of monopolizing the live event industry in the United States. The attorney general, Merrick B. Garland, said, "We allege that Live Nation relies on unlawful, anticompetitive conduct to exercise its monopolistic control over the live events industry in the United States at the cost of fans, artists, smaller promoters, and venue operators."

The complaint alleges that Live Nation-Ticketmaster used a variety of tactics to maintain its dominance, including unfair contractual agreements, financial retaliation against competitors, and exclusive contracts with venues that limited consumer choice.

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Response from Live Nation-Ticketmaster

Live Nation Entertainment responded to the filing by denying the allegations and arguing that the DOJ's lawsuit ignores the complexities of the live entertainment industry. According to a statement obtained by PEOPLE, Live Nation-Ticketmaster stated: "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."

DOJ's allegations and previous investigations

The DOJ lawsuit accuses Live Nation-Ticketmaster of abusing its relationships with potential competitors and engaging in anticompetitive behavior, such as threats and retaliation against venues and promoters who collaborate with rivals. Furthermore, the complaint claims that Live Nation-Ticketmaster strategically acquired smaller promoters to stifle competition and influence artist compensation.

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This legal action follows previous scrutiny of Ticketmaster's parent company, Live Nation Entertainment, which included an antitrust investigation that began in November 2022. The investigation was prompted by concerns about Taylor Swift's Eras Tour ticket sales and allegations of unfair ticket distribution practices.

The outcome of this lawsuit could have serious consequences for both consumers and the live music industry as a whole. If successful, the DOJ's efforts to break up the Live Nation-Ticketmaster partnership could result in increased competition, lower ticket prices, and easier access to live concerts for fans.

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