Live Nation, which operates several of Atlanta’s top venues, has been sued in an antitrust case

According to the complaint, both Live Nation and its subsidiary Ticketmaster stifled competition by acquiring or threatening companies deemed threats, and by signing long-term contracts with venues that prevented them from working with multiple ticket sellers to offer the best set of prices, among other things. several other reasons. The complaint alleges that Live Nation’s anticompetitive behavior resulted in higher prices and fees for consumers.

Live Nation is the most dominant player in Atlanta’s live events industry – by a wide margin. It maintains long-term leases at the Chastain Park, Lakewood and Ameris Bank amphitheaters, owns and manages the Tabernacle downtown, and manages the Buckhead Theater and the Coca-Cola Roxy at The Battery. Several of Atlanta’s largest venues use Ticketmaster as their primary ticketing outlet, including State Farm Arena and Mercedes-Benz Stadium.

ExploreLive Nation cuts concerts at Lakewood Amphitheater in favor of Ameris

The legal proceedings are unlikely to have any direct impact on operations and it may take some time before the matter is resolved.

Live Nation maintains that ticket pricing is not up to it, noting that artists and bands set prices and decide how tickets are sold. The company’s executive vice president of corporate and regulatory affairs, Dan Wall, said in a statement Thursday that factors such as rising production costs, artist popularity and online ticket scalping “are actually responsible for higher ticket prices.”

Live Nation, which has denied violating antitrust laws for years, said Thursday that the lawsuit “will not resolve fans’ concerns about ticket prices, service fees and access to in-demand programming.”

Thursday’s legal action is the culmination of years of criticism of Live Nation from concert-goers, industry professionals and politicians. In 2010, Ticketmaster and Live Nation merged to form the now dominant giant that ended 2023 with $18.8 billion in concert revenues, $2.9 billion in ticket sales and $1.1 billion in box office revenues . sponsorship and advertising.

Regulators under Biden have taken aggressive steps to enforce federal antitrust laws and police mergers. Although not all activities were successful.

According to the New York Times, in 2022 the Department of Justice initiated an antitrust investigation into Live Nation, which was made public shortly after the failed attempt to introduce tickets to Taylor Swift’s “Eras Tour”. Live Nation denied that it “(engages) in conduct that could justify antitrust proceedings.”

A few months later, in February 2023, after Beyoncé announced her tour, the Senate Judiciary Committee posted on X, formerly Twitter: “We’re watching, @Ticketmaster.”

James Sammataro, a partner at Pryor Cashman LLP who has represented numerous artists and labels in music-related disputes, told The Atlanta Journal-Constitution that the lawsuit was expected.

“We have real social sentiment and a lot of talking,” he said. “It was only a matter of time before some restrictions were put in place.”

Many concert-goers and industry professionals cheered the effort, especially ardent fans of the artists who paid twice the advertised price. One music professional told X that he has worked in large venues throughout his career and noted that Live Nation “decimates every aspect of concerts” for fans, artists and employees.

The Future of Music Coalition, a Washington, D.C.-based nonprofit that represents artists, welcomed the lawsuit, calling it “brave.”

“It’s a great day for musicians and music fans,” the group said on the X show.

Robert Reich, former President Bill Clinton’s labor secretary, called the lawsuit “a big deal.”

“Amazon put pressure on sellers and raised prices. “Apple used its power to kill rivals,” he wrote in X. “Ticketmaster/Live Nation used its dominance to raise ticket costs and impose huge fees. “Every company faces an antitrust lawsuit from the Biden (administration).”

-The Associated Press contributed to this report.