Department of Justice Files Antitrust Complaint Against Live Nation, Ticketmaster Joins in Michigan

Tired of those annoying fees that inflate the cost of purchasing tickets to concerts and other live events? It turns out that the US Department of Justice does too.

On Thursday, the Justice Department’s antitrust division filed a lawsuit against Live Nation and its subsidiary Ticketmaster, alleging that the live ticketing giants have monopolized the industry in a way that hinders competition and raises ticket prices for consumers.

Michigan is among 29 states named as co-plaintiffs in the lawsuit filed in the Southern District of New York, a federal district court. The Justice Department and states are asking the court to dissolve Live Nation and Ticketmaster, which merged in 2010. The lawsuit does not specify how the companies should be divided.

Live Nation, which generates $22 billion in annual revenue, owns or controls more than 265 concert venues in North America, including 60 of the top 100 amphitheaters, Justice Department lawyers wrote in a 108-page briefing. Venues operated by Live Nation include Saint Andrew’s Hall and The Fillmore Detroit in Detroit, Pine Knob Music Theater in Clarkston and GLC Live at 20 Monroe in Grand Rapids. The company bills itself as “the world’s largest live entertainment company.”

In its lawsuit, the Justice Department argues that Live Nation and Ticketmaster exploit the marketplace to strike deals with venues and artists by coercing other companies not to bid on their behalf; threatening retaliation against other companies attempting to enter the market; purchasing smaller potential competitors; threatening facilities that try to cooperate with other companies; tying these facilities to long-term contracts to reduce competitive pressure; preventing venues from using multiple ticket sellers; and limiting the number of venues with which artists and animators can contract.

Live Nation disputes that its practices are responsible for rising ticket prices. In a statement, the company’s director wrote that the higher costs are caused by factors such as rising production costs, the popularity of artists and “ticket scalping” on the Internet. Live Nation also claims that the majority of ticket revenue goes to the venue, not the company selling the tickets.

Still, the plaintiffs claim that Live Nation and Ticketmaster have monopolized the live performance ticketing industry.

“Michigan concert-goers deserve the chance to experience the thrill of seeing their favorite artist live, at a venue close to home, without breaking the bank,” Michigan Attorney General Dana Nessel said in a statement. “Unfortunately, for many, this dream is out of reach due to Live Nation’s illegal monopoly. A truly competitive market is essential to providing consumers with choice.”

The Justice Department argues that Live Nation and Ticketmaster’s practices force customers to pay a “Ticketmaster tax,” which adds several fees to the actual ticket price.

“The practical real-world costs of Live Nation’s strategy are well known. “Public frustration with concert ticket pricing and sales continues to mount,” the attorneys wrote. “The fees you pay to attend a live concert in America far exceed those in comparable parts of the world.”

The lawsuit lists additional costs for customers such as service fees, convenience, payment processing and more.

Last year, fans complained about Ticketmaster over charging for concert tickets for British rock band The Cure. Although members of the band, which played at Pine Knob on tour last summer, took to social media to call the fees a “greedy scam” and say they never agreed to concert fees, patrons reported paying more than $21 for each concert. concert. Tickets are $20.

Pop megastar Taylor Swift also criticized Ticketmaster last year after strong demand for shows led to the cancellation of the first public ticket sale for the Eras Tour, even though the company said it was able to meet demand.

Live Nation and Ticketmaster defended their practices on Thursday. In an online post, Dan Wall, Live Nation’s executive vice president of corporate and regulatory affairs, wrote that the Justice Department is bowing to political pressure and that competition in the ticketing industry has increased since the merger of Live Nation and Ticketmaster.

“It is also clear that we are yet another victim of this administration’s decision to hand over antitrust enforcement to a populist pressure that simply rejects how antitrust law works,” Wall wrote. “Some people call it ‘anti-monopoly,’ but in reality it’s just anti-business.”

Editor’s note: This story has been updated with additional comment from Live Nation.

Contact Arpan Lobo: [email protected]. Follow him on X (Twitter) @arpanlobo.