Department of Justice sues Ticketmaster and Live Nation. What does this mean for concert-goers?

Is the Department of Justice lawsuit against Ticketmaster and Live Nation give concert-goers, sports fans and theater patrons relief from rising ticket prices?

The lawsuit could potentially lead to the breakup of Live Nation Entertainment, the company created by Ticketmaster’s 2010 merger with concert promoter Live Nation. Attorney General Merrick Garland said the goal is to allow for more competition and allow smaller players to gain a larger share of the U.S. ticketing market, of which Ticketmaster controls as much as 70%.

More competition may result in cheaper tickets. However, experts say that live event fans should not expect any changes in the near future.

What happened?

The Department of Justice on Thursday accused Live Nation of engaging in a series of practices that allowed it to maintain its position in the live music scene. They accused her of using long-term contracts to prevent venues from selecting competing ticket providers, preventing venues from using multiple ticket sellers and threatening venues that they could lose money and fans if they did not choose Ticketmaster.

Does Taylor Swift have anything to do with this?

The uproar that ensued from countless problems Swifties encountered while trying to purchase tickets through Ticketmaster for pop star Eras’ 2022 tour have shed light on cracks in the US ticketing system.

State attorneys general – 30 of whom joined the Justice Department’s lawsuit – I started checking Ticketmaster. The widespread outrage on social media even led Senate hearing.

Eleanor Fox, a professor emeritus at New York University School of Law, said the collapse of the entertainment giant, which appeared unable to serve a willing audience, may have helped the Justice Department cement its position, highlighting the extent of Ticketmaster’s dominance.

“I mean, you could say it was unusual that there was so much demand (and that’s what led to the problems), but they knew it would be unusual that there was so much demand,” Fox said. “When there is competition, companies are more sensitive and responsive to problems that may arise.”

Why are ticket prices so high?

Ticket prices have increased for a number of reasons, including a huge increase in demand following the Covid-19 pandemic.

Live Nation’s results were announced last month that global ticket sales for the top 100 tours in 2023 increased 46% compared to the previous year, generating sales of $9.17 billion. Last year, attendance at Live Nation events increased by 20%, reaching a staggering 145 million.

According to a trade publication Poll starThe average ticket price of the top 100 trips in 2023 was $122.84, a 17% increase from the previous year and a 31% increase compared to the average price in 2018.

And as anyone who has tried to get tickets to a popular event knows, service fees and ticket resale can significantly increase prices, in some cases up to thousands of dollars.

In the lawsuit, the Justice Department alleges that owning a giant company like Live Nation Entertainment hurts margins because it controls a significant portion of the market.

What does Ticketmaster say?

Live Nation and Ticketmaster that have long clashed with artists and fans, have always denied that they operate in a monopolistic manner. They claim they are not to blame for the high ticket prices. On Thursday, they said the Justice Department’s lawsuit “will not resolve fans’ concerns about ticket prices, service fees and access to in-demand programming.” They claim that service fees burden concert venues and that external competition “continuously erodes” Ticketmaster’s market share.

What happens next?

Unless dismissed, Thursday’s lawsuit marked the beginning of what will likely be a long process. It could take a year to start a trial, and then there will be months of arguments before a judge issues a ruling, says Fox of NYU School of Law.

“And especially if the judge orders a separation, an appeal will be filed,” she added. – So you’re looking at years.

Are there any other anti-monopoly lawsuits pending?

The government is fighting several lawsuits accusing large companies of engaging in illegal monopolies that eliminate competition and raise prices.

In March, the Department of Justice sued Appleaccusing the technology giant of creating an illegal monopoly in the smartphone market.

Earlier this month, closing speeches were delivered in a lawsuit against Google that dates back to the Trump administration. Federal prosecutors have accused the tech giant of maintaining monopoly status as a search engine.

In September, The Federal Trade Commission sued Amazon alleging that the e-commerce giant is abusing its market position to inflate prices on and off its platform, overcharge sellers and stifle competition. Amazon moved to dismiss the lawsuit in December, but the judge set a trial date for October 2026.