Staff Reports
The Department of Justice (DOJ) sued Ticketmaster and Live Nation, its parent company, for allegedly preventing fair competition in the live entertainment industry. The lawsuit, filed in New York by the DOJ and 30 states and district attorneys general, aims to give smaller companies a better chance to succeed in the market. The lawsuit was expected due to previous issues with ticket sales for Taylor Swift’s “Eras” tour. It is alleged that Live Nation aimed to control the live events industry by making deals with large venues in the United States to ensure that their events were ticketed through the platform.
The DOJ and 30 Attorneys General Have Filed a Lawsuit Against Ticketmaster https://t.co/qkkVjGuuvA
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Attorney General Merrick Garland said that Live Nation uses unfair and anti-competitive actions to dominate the live events industry in the United States. This harms fans, artists, smaller promoters, and venue operators, leading to higher fees for fans, fewer concert opportunities for artists, smaller promoters being pushed out, and limited ticketing service options for venues. The DOJ aims to break up Live Nation-Ticketmaster to address these issues.
In response to the allegations, Live Nation called the DOJ’s claims “absurd” and stated that they are not the cause of fan frustration in the live entertainment industry. They argued that they are not wielding monopoly power or causing high ticket prices. Live Nation’s merger with Ticketmaster in 2010 has allowed them to own and operate over 265 entertainment venues in North America, including more than 60 of the top 100 amphitheaters. The complaint alleges that through Ticketmaster, Live Nation controls about 80 percent or more of major concert venues’ primary ticketing for concerts.
The DOJ pointed out that in the Taylor Swift situation, high ticket prices for shows in the United States led many fans to purchase tickets for tour dates overseas, where prices were often lower even after factoring in international air travel. They also claimed that music fans in the United States are deprived of ticketing innovation and are forced to use outdated technology while paying more for tickets compared to fans in other countries.
