The US Department of Justice may demand the breakup of Live Nation: Reports

May 22 (Reuters) – The U.S. Department of Justice and a group of states will sue Live Nation Entertainment for antitrust violations and may seek remedies including dissolving the company, Bloomberg News reported on Wednesday.

As sources previously told Reuters, the Justice Department is investigating Ticketmaster’s dominance in concert ticket sales. Bloomberg said the lawsuit is expected to be filed in the Southern District of New York on Thursday.

The legal action underscores the aggressive approach President Joe Biden’s antitrust enforcers have taken in trying to create more competition in a wide variety of industries, from Big Tech to health care to grocery.

Live Nation has come under fire in 2022 after Ticketmaster botched ticket sales for Taylor Swift’s 2023 tour. In January 2023, US senators sharply criticized Live Nation’s lack of transparency and inability to block ticket purchases by bots during a hearing called after the ticket sales fiasco.

The lawsuit leaves the Justice Department with options ranging from ordering the company to stop its illegal behavior (a common request) to asking a court to resolve the matter, which is rare.

The Department of Justice approved Ticketmaster’s merger with Live Nation in 2010, a deal that was controversial at the time.

In 2020, the court extended most of its oversight of the merger through 2025 because, the department said, Ticketmaster retaliated against stadiums and arenas that chose to use other ticketing companies.

Live Nation did not immediately respond to a request for comment, but has expressed confidence in the past that its business practices are lawful and the investigation was prompted by complaints from competitors, including resellers.

Live Nation shares fell 7% after the bell. The Justice Department did not immediately respond to a Reuters request for comment.

Reports by Niket Nishant in Bengaluru; Editing: Alan Barona and Chris Reese