New Jersey Joins Ticketmaster, Live Nation Antitrust Lawsuit

New Jersey officials are cheering on the federal antitrust lawsuit filed Thursday against Ticketmaster and its owners Live Nation.

Matthew Platkin, New Jersey’s attorney general, was one of 28 state attorneys general who signed on to the U.S. Department of Justice’s lawsuit against Live Nation alleging an illegal monopoly.

“For decades, New Jersey has long enjoyed a vibrant music scene – from jazz in Newark to rock on the Jersey Shore – and fans and artists alike have suffered under the complex business network that Live Nation has built since purchasing Ticketmaster in 2010. ” Platkin, the state’s top law enforcement official, said Thursday.

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U.S. Rep. Bill Pascrell Jr., D-Paterson, has been opposing Live Nation-Ticketmaster’s alleged monopoly for years, stating in 2022 that the Biden administration should break up the entertainment conglomerate.

In March, his office released a report containing allegations of “rampant corruption and abuses practiced by the Live Nation-Ticketmaster monopoly.” Live Nation allegedly created a business model in which it entered into exclusive agreements with third parties, allowing the live entertainment giant to profit from properties and other third parties, often at the expense of the consumer.

“This news is a victory for the millions of American fans who have been exploited, deceived, defrauded and simply robbed by this corrupt and greedy entity,” Pascrell said in a statement Thursday.

Live Nation locations in New Jersey

Live Nation generates $22 billion annually and owns or operates more than 265 concert venues in North America. In New Jersey, Live Nation operates the Freedom Mortgage Pavilion in Camden and the PNC Bank Art Center in Holmdel.

US Attorney General Merrick Garland said the dominance allowed the company to exert control over the live events industry in a way that harmed fans, performers, smaller promoters and venue operators. According to a federal lawsuit filed in New York, the company uses outdated technology that deprives fans of ticket information.

“As a result, fans pay more in fees, artists have fewer opportunities to play shows, smaller promoters are squeezed out and venues have fewer choices in ticketing,” Garland said in a statement. “It’s time to break up Live Nation.”

According to the federal lawsuit, Live Nation retaliated against potential competitors, blocked competitors by signing long-term contracts that barred competing ticket sellers or ticketing technology, and restricted artists’ access to venues by owning or controlling access to those locations.

Live Nation and Ticketmaster analysis

Live Nation Entertainment Inc., which includes event promoter Live Nation and ticket seller Ticketmaster, has been involved in controversy and faced criticism since the 2010 merger of Live Nation and Ticketmaster.

Ticket prices have skyrocketed over the years, which is often attributed to Ticketmaster’s dynamic pricing system, which adjusts ticket prices based on demand.

During the 2022 Bruce Springsteen ticket crisis, fans were seeing $4,000 worth of tickets shortly after they were first sold.

Also in 2022, Taylor Swift spoke out on behalf of her fans after Ticketmaster canceled general ticket sales for her record-breaking Eras tour, and the verified fan pre-sale was characterized by numerous delays, errors and interruptions. Before the tickets hit third-party sites, they were selling for thousands of dollars.

What does Live Nation say?

The companies said in a statement that the 1.4% annual profit reflects “the opposite of monopoly power.”

“The Department of Justice’s lawsuit will not resolve fans’ concerns about ticket prices, service fees and access to in-demand programming,” the statement said. “We will defend ourselves against these baseless allegations, use this opportunity to shine a light on the industry, and continue to push for reforms that truly protect consumers and artists.”

This article includes information from USA Today.