Washington, D.C. – The Justice Department has taken legal action against Ticketmaster and its parent company, Live Nation, by filing a federal lawsuit on Thursday. The lawsuit accuses the companies of engaging in illegal monopolistic practices within the live entertainment industry. According to federal officials, Live Nation’s ownership of Ticketmaster has allowed it to dominate a significant portion of the market, resulting in negative impacts on concertgoers and artists.
The 128-page civil suit, filed in U.S. District Court for the Southern District of New York, contends that Live Nation’s actions have hindered competition and placed burdens on consumers. Justice Department officials are pushing for structural changes in the company’s business operations, including the possibility of breaking up the two entities.
The investigation into Live Nation’s activities gained momentum in 2022 when Ticketmaster faced backlash for mishandling ticket sales for Taylor Swift’s The Eras Tour. The Antitrust Division of the Justice Department was already conducting an inquiry into the company at that time. Attorney General Merrick Garland announced the lawsuit, highlighting accusations of monopolistic behavior within the live concert industry.
The federal suit, joined by 29 states and the District of Columbia, alleges that Live Nation has stifled innovation by creating barriers to competition through a self-reinforcing system. This system allows Live Nation to control fees associated with concerts, attracting major artists and locking them into exclusive deals to sell more tickets. The Justice Department emphasized the detrimental effects of Live Nation’s actions on both the structure of the live music industry and the creative expression that is integral to American society.
Since the merger approval of Live Nation and Ticketmaster in 2010, concerns have been raised about the impact on consumers and artists. The lawsuit filed on Thursday accuses the companies of engaging in anticompetitive practices, which result in higher ticket prices for concertgoers. Live Nation is accused of pressuring businesses to work exclusively with Ticketmaster and threatening venues with consequences if they choose to use alternative ticketing services.
Live Nation responded to the lawsuit, stating that it will contest the allegations and advocate for reforms that address the concerns raised. Artists have testified about the undue influence that Live Nation holds within the industry, citing examples of how ticket prices and fees impact their earnings. The ongoing legal battle underscores the complexities of the live entertainment industry and the need for regulatory oversight to protect consumers and artists.