The Justice Department filed a sweeping antitrust lawsuit against Ticketmaster and parent company Live Nation Entertainment on Thursday, accusing them of running an illegal monopoly over live events in America — squelching competition and driving up prices for fans. The lawsuit, filed in federal court in Manhattan, was being brought with 30 state and district attorneys general and seeks to break up the monopoly they say is squeezing out smaller promoters and hurting artists.
Quick Read
- Justice Department Antitrust Lawsuit:
- Filed against Ticketmaster and Live Nation Entertainment for illegal monopoly.
- Accused of squelching competition and driving up prices for fans.
- Lawsuit Details:
- Filed in federal court in Manhattan with 30 state and district attorneys general.
- Seeks to break up the monopoly impacting smaller promoters and artists.
- Allegations by Attorney General:
- Live Nation uses unlawful, anticompetitive practices.
- Practices include long-term contracts, blocking venues from using multiple ticket sellers, and retaliatory threats.
- Impact on Fans and Industry:
- Fans pay more in fees.
- Artists have fewer opportunities.
- Smaller promoters are squeezed out.
- Venues have limited choices for ticketing services.
- Live Nation’s Response:
- Denies violating antitrust laws.
- Claims market dominance due to superior Ticketmaster system.
- Competitor Complaints:
- Competitors argue Live Nation blocks market disruption.
- Practices include withholding acts from venues not using Ticketmaster.
- Biden Administration’s Antitrust Approach:
- Part of broader enforcement against illegal monopolies.
- Previous lawsuits against Apple, Google, Amazon, and other tech giants.
- Ticketmaster’s Market Dominance:
- Processes 500 million tickets annually in over 30 countries.
- Controls 70% of major U.S. concert venue tickets.
- Owns or controls more than 265 North American venues.
- Historical Issues:
- Site crash during a 2022 Taylor Swift presale event.
- Congressional hearings and state bills followed to protect consumers.
- Merger Conditions and Violations:
- Allowed to merge in 2010 with a no-retaliation agreement for 10 years.
- Found in violation in 2019, extending the prohibition to 2025.
The Associated Press has the story:
Justice Dept. filed antitrust lawsuit against Ticketmaster & Live Nation
Newslooks- WASHINGTON (AP) —
The Justice Department filed a sweeping antitrust lawsuit against Ticketmaster and parent company Live Nation Entertainment on Thursday, accusing them of running an illegal monopoly over live events in America — squelching competition and driving up prices for fans.
The lawsuit, filed in federal court in Manhattan, was being brought with 30 state and district attorneys general and seeks to break up the monopoly they say is squeezing out smaller promoters and hurting artists.
“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,” Attorney General Merrick Garland said in a statement. “The result is that fans pay more in fees, artists have fewer opportunities to play concerts, smaller promoters get squeezed out, and venues have fewer real choices for ticketing services. It is time to break up Live Nation-Ticketmaster.”
The Justice Department accuses Live Nation of a slew of practices that allow it to maintain a stronghold over the live music scene, including using long-term contracts to keep venues from choosing rival ticketers, blocking venues from using multiple ticket sellers and threatening venues that they could lose money and fans if they don’t choose Ticketmaster. The Justice Department says Live Nation also threatened to retaliate against one firm if it didn’t stop a subsidiary from competing for artist promotion contracts.
Live Nation has denied that it engages in practices that violate antitrust laws. When it was reported that the company was under federal investigation in 2022, the concert promoter said in a statement that Ticketmaster enjoys a such a large share of the market because of “the large gap that exists between the quality of the Ticketmaster system and the next best primary ticketing system.”
But competitor ticket sellers have long complained that Live Nation makes it difficult for them to disrupt the market with practices such as withholding acts if those venues don’t agree to use Ticketmaster’s service.
The lawsuit is the latest example of the Biden administration’s aggressive antitrust enforcement approach targeting companies accused of engaging in illegal monopolies that box out competitors and drive up prices. In March, the Justice Department filed a lawsuit against Apple alleging that the tech giant has monopoly power in the smartphone market. The Democratic administration has also taken on Google, Amazon and other tech giants.
“Today’s action is a step forward in making this era of live music more accessible for the fans, the artists, and the industry that supports them,” Deputy Attorney General Lisa Monaco said in a statement.
Ticketmaster, which merged with Live Nation in 2010, is the world’s largest ticket seller, processing 500 million tickets each year in more than 30 countries. Around 70% of tickets for major concert venues in the U.S. are sold through Ticketmaster, according to data in a federal lawsuit filed by consumers in 2022. The company owns or controls more than 265 of North America’s concert venues and dozens of top amphitheaters, according to the Justice Department.
The ticket seller sparked outrage in November 2022 when its site crashed during a presale event for a Taylor Swift stadium tour. The company said its site was overwhelmed by both fans and attacks from bots, which were posing as consumers to scoop up tickets and sell them on secondary sites. The debacle prompted congressional hearings and bills in state legislatures aimed at better protecting consumers.
The Justice Department allowed Live Nation and Ticketmaster to merge as long as Live Nation agreed not to retaliate against concert venues for using other ticket companies for 10 years. In 2019, the department investigated and found that Live Nation had “repeatedly” violated that agreement and extended the prohibition on retaliating against concert venues to 2025.
You must Register or Login to post a comment.