US sues Ticketmaster and Live Nation for alleged "illegal monopoly" over concert ticket sales
The US Department of Justice (DOJ) has filed an antitrust lawsuit seeking to “restore competition” by breaking up Ticketmaster and its parent company, Live Nation.
Thirty states joined the DOJ in a lawsuit accusing Live Nation-Ticketmaster of abusing its “illegal monopoly” over US concert and event ticket sales.
A prepared statement from Assistant Attorney General Jonathan Kanter alleges the company has power over artists because it represents hundreds of entertainers through its “dominant promotions business, which controls the organizing, marketing, and financing of live concerts.”
The DOJ says the monopoly allows Live Nation-Ticketmaster to earn money from various streams, including tickets, sales, concessions, merchandise, marketing, and parking.
These ticketing arrangements drive up service fees, or what Kanter calls the “dreaded Ticketmaster Tax.”
The lawsuit accuses Live Nation-Ticketmaster of several industry malpractices, including avoiding bidding wars that would have returned more money to artists, acquiring smaller promoters to prevent them from being competitors, and retaliating against venues that chose different promoters or ticket companies.
“Collectively, these practices forge an impenetrable corporate barrier around the live music industry,” wrote Kanter.
The DOJ’s investigation was underway before Ticketmaster made headlines for botching Taylor Swift’s Eras Tour concert ticket sales in 2022.
However, that incident gained mass attention after Swift spoke out against the ticketing giant.
In a statement to Daily Hive, Live Nation stated that 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 added that while this suit may be a “PR win” for the DOJ, it “will not hold up 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.”
The company claimed there is “more competition than ever” in the events market, and Ticketmaster’s market share has dropped since 2010.
Live Nation said it will defend itself against the “baseless allegations” and vowed to push for other industry reforms.
Live Nation and Ticketmaster merged in 2010, garnering much more power than they had individually in the previous decade. The Justice Department approved the merger despite suspicion and opposition from others in the music industry.
In Canada, class-action lawsuits have been filed against Ticketmaster Canada over delays in refunding customers for tickets they bought to shows affected by the COVID-19 pandemic.
Canadian Taylor Swift fans have also tried to take action against the ticket seller, launching a petition demanding that Ticketmaster change its policies surrounding resellers and its Verified Fan registration process.
With files from Amir Ali and Isabelle Docto
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