Live Nation–Ticketmaster antitrust lawsuit filed by Department of Justice

Photo: Gabby Jones/Bloomberg via Getty Images

The Justice Department said Live Nation and Ticketmaster’s conduct is “anti-competitive and illegal,” announcing a long-awaited antitrust lawsuit aimed at breaking up the companies. Attorney General Merrick Garland criticized Live Nation during a press conference after the lawsuit was filed on May 23. “We allege that Live Nation has illegally monopolized the concert industry markets in the United States for far too long,” Garland said. “It’s time to break it up.” Twenty-nine states and the District of Columbia join the Department of Justice in the Sherman Antitrust Act lawsuit.

In an online statement, Live Nation said the Justice Department does not understand how ticket prices and antitrust law work, calling the monopoly allegations “absurd.” Dan Wall, the company’s executive vice president of corporate and regulatory affairs, wrote that “the world is a better place” since Live Nation and Ticketmaster merged in 2010.

But Garland and his team outlined alleged anticompetitive behavior from a company they say controls more than 80 percent of major ticket sales, 60 percent of promotions and 60 percent of major amphitheaters, and has contracts with more than 400 artists. They delved into many oft-repeated criticisms of Live Nation and Ticketmaster, including ticket fees, allegedly forcing artists and venues to use their ticketing and promotion services, and purchasing and partnering with other promoters to discourage competition. “We allege that Live Nation controls the U.S. entertainment industry because it breaks the law,” Garland said. He added that the division of the companies was “necessary” and Deputy Attorney General Jonathan Kanter called for “decisive and effective solutions.” In a lighter moment of the press conference, Garland also recalled seeing a young Bruce Springsteen, who had previously struggled with Ticketmaster’s skyrocketing pricing, open for Bonnie Raitt.

Wall rejected many of the Justice Department’s allegations in Live Nation’s statement, arguing that his company does not set high ticket prices, does not charge high fees or even has market power. “Ticketmaster in particular is a much better company with a greater focus on artists and fans under the ownership of Live Nation than it ever was as a standalone company,” Wall said. He portrayed today’s lawsuit as the Justice Department bowing to external pressure.

The antitrust lawsuit comes after escalating problems with Ticketmaster and Live Nation in recent years, leading to disastrous tour sales for artists including Taylor Swift, Beyoncé and Springsteen. These issues also brought Live Nation and Ticketmaster to congressional attention, and senators at the hearing began to turn their attention to Live Nation’s president and chief financial officer. Shortly thereafter, the Senate introduced an antitrust bill targeting Live Nation, along with a separate ticketing bill that had just passed in the House of Representatives.