Minnesota Joins Antitrust Lawsuit Against Ticketmaster and Live Nation

(KNSI) – Minnesota is joining a class-action lawsuit filed against Ticketmaster and Live Nation.

Attorney General Keith Ellison says his office has signed an agreement with 30 other states and the Justice Department. The report indicates that the companies are currently operating an illegal monopoly.

Ellison says millions of Minnesotans flock to entertainment venues of all sizes every year and are forced to pay more for each performance because of Live Nation’s dominance over the industry. He laments that this situation is the embodiment of corporate greed.

“One of the main drivers of inflation in this country is corporate greed and illegal behavior, and Live Nation and Ticketmaster are prime examples of this.

“People are fed up with having no choice but to spend their hard-earned money on the high prices and hidden fees that Ticketmaster routinely charges. Live Nation’s anti-competitive behavior is to blame because too often consumers who simply want to enjoy live entertainment have nowhere to turn. Especially at a time when Minnesotans and all Americans are finding it difficult to afford life, I am proud to join the Department of Justice and this bipartisan coalition from across the country to hold Live Nation accountable. Consumers deserve to see an end to these disgusting and monopolistic practices, including Live Nation’s complete divestment of Ticketmaster.”

The lawsuit was filed in the United States District Court for the Southern District of New York. In addition to excessive fees, the company accuses artists of using Live Nation to promote their performances or face exclusion from certain venues. This means that the laws themselves provide for larger reductions that will ultimately be offset by higher ticket prices for consumers.

Live Nation responds to the lawsuit. On Thursday, the company issued a statement. “The Department of Justice lawsuit will not solve fans’ concerns about ticket prices, service fees and access to in-demand programming. Calling Ticketmaster a monopoly may be a PR victory for the Justice Department in the short term, but it will lose in court because it ignores basic principles of the live entertainment economy, such as the fact that most service fees go to venues and that competition continually erodes market share and Ticketmaster’s profit margin. Our growth comes from helping artists tour the world, creating lasting memories for millions of fans and supporting local economies across the country by maintaining high-quality jobs. 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.”

Executive Vice President of Corporate and Regulatory Affairs Dan Wall adds: “The Department of Justice’s complaint attempts to portray Live Nation and Ticketmaster as the causes of fan frustration in the live entertainment industry. He blames concert organizers and ticket selling companies for high ticket prices – neither of them controls ticket prices. It ignores everything that is actually responsible for higher ticket prices, from rising production costs to the popularity of artists to the 24/7 online ticket scalping that reveals the public’s willingness to pay much more than the cost of the original tickets. He blames Live Nation and Ticketmaster for high service fees, but ignores the fact that Ticketmaster only keeps a modest portion of those fees. In fact, primary ticket sales are one of the cheapest digital distributions in the economy.”

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