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Live Nation And Ticketmaster Sued By US DOJ For Alleged Monopoly
The United States Department of Justice (DOJ) filed an antitrust lawsuit against Live Nation this morning (May 23), accusing the company of running a monopoly through its Ticketmaster division.
The legal case alleged that Live Nation used its dominance to stifle competition in the ticketing industry. “It is time to break it up,” Attorney General Merrick B. Garland said during a press conference, per NBC News.
“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,” Garland stated. “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.”
Filed in the U.S. District Court for the Southern District of New York, the complaint claimed that Live Nation and Ticketmaster violated Section 2 of the Sherman Act by unlawfully exercising monopoly power. It further accused the companies’ practices of harming performers and venues by creating barriers for rival businesses.
“The DOJ’s lawsuit won’t solve the issues fans care about relating to ticket prices, service fees, and access to in-demand shows,” Live Nation argued in a statement. “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, such as the fact that the bulk of service fees go to venues, and that competition has steadily eroded Ticketmaster’s market share and profit margin.”
Notably, the filing came on the heels of Live Nation and Travis Scott settling nine out of 10 wrongful death suits related to the 2021 Astroworld Festival tragedy. The two parties, along with other event organizers, were accused of negligence in ensuring concert safety.