Arizona joins federal antitrust lawsuit against Live Nation, Ticketmaster

Arizona’s Kris Mayes is one of 30 state and district attorneys across the country who joined the Justice Department to file a federal lawsuit Thursday against Live Nation Entertainment and its wholly owned subsidiary Ticketmaster. The lawsuit alleged that Live Nation had created a monopoly on ticket prices for live events across the United States. The civil antitrust lawsuit was filed in the Southern District of New York.

The fight was long overdue: Music fans and other consumers, artists, independent venues and even members of Congress argued that Ticketmaster, which merged with Live Nation in 2010, artificially inflated ticket prices. If successful, this suit could change the live events landscape – as well as the prices fans pay to watch their favorite artists – across the country.

State and district attorneys joining the lawsuit cover several states that host major live event venues, including New York, California, Colorado, Florida and Texas.

Live Nation Entertainment did not immediately respond to NPR’s request for comment Thursday morning.

In the lawsuit, the Department of Justice and the states accuse Live Nation and Ticketmaster of engaging in several forms of anticompetitive behavior, including retaliating against other promotional companies and venues that worked with their rivals; blocking competitors with long-term, exclusive ticketing contracts; restricting musicians’ access to live event venues and strategically acquiring smaller, independent companies that Live Nation allegedly saw as a threat to its dominance.

Earlier this month, in an effort to increase transparency for consumers, the House of Representatives passed the TICKET Act, which would force Live Nation and other ticket sellers to include all costs and fees in the ticket price of a live event. The bill introduced by Rep. Ted Cruz of Texas was supported by hundreds of prominent musicians, including Billie Eilish, Dave Matthews and Nile Rodgers, who wrote in a joint statement: “We join together to say that the current system is broken: predatory sellers and secondary platforms use fraudulent ticketing practices to inflate ticket prices and deprive fans of the chance to see their favorite artists at a fair price.”

According to Thursday’s filing, Live Nation Entertainment currently owns or controls more than 250 concert venues in North America and controls approximately 60% of concert promotions at major venues across the United States. The company also directly manages over 400 music bands.

In the lawsuit, the Justice Department and the states said: “With such sweeping authority comes influence. “Live Nation and its wholly owned subsidiary, Ticketmaster, have leveraged this power and influence to position themselves at the center and at the periphery of virtually every aspect of the live music ecosystem.”

In the past, Live Nation has argued that musicians – not its own company – ultimately set their own ticket prices, regardless of Live Nation and Ticketmaster’s market dominance.

“No wonder Live Nation pointed the finger at the artists,” a senior justice official said on background Thursday morning. “In an industry where artists have been required to be compensated for their creative work, it is important that artists are paid appropriately.”

“For us, that’s a bit of a stretch,” the official continued, referring to Live Nation’s earlier argument. “How is the system configured? How does Live Nation’s control at all levels of the system allow a process that is partially distorted by Live Nation’s power?”

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