Live Nation Affected by Antitrust Lawsuit Filed by US Department of Justice

On Thursday (May 23), the U.S. Department of Justice, along with 30 state and district attorneys general, filed a civil antitrust lawsuit against Live Nation Entertainment and its subsidiary Ticketmaster.

The Department of Justice says it is suing Live Nation for alleged “monopolization and other unlawful conduct that frustrates competition in markets throughout the live entertainment industry.”

The lawsuit, which includes a request for structural relief, aims to “restore competition in the live concert industry, provide fans with better choices at lower prices, and open the doors to venues for working musicians and other performing artists.”

The complaint, filed in the United States District Court for the Southern District of New York, alleged that Live Nation “unlawfully exercised its monopoly power” in violation of Section 2 of the Sherman Act.

The Justice Department says that as a result of their alleged behavior, “music fans in the United States are deprived of ticketing innovation and forced to use outdated technology, paying more for tickets than fans in other countries.”

Additionally, the Department of Justice alleges that “Live Nation-Ticketmaster exercises power over performers, venues and independent promoters in a manner that harms competition. Live Nation-Ticketmaster also imposes competitive barriers that limit the entry and expansion of competitors.”

In a statement released in response to the lawsuit, Live Nation Entertainment said: “The complaint – and even more so the press conference announcing it – seeks to paint Live Nation and Ticketmaster as the cause of fan frustration with the live entertainment industry.”

“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.”

Living Nation

The post continued: “(The complaint) blames the high ticket prices on concert organizers and ticketing companies – neither of which controls ticket prices.

“It ignores everything that is actually responsible for higher ticket prices, from rising production costs to the popularity of artists to 24/7 online ticket scalping that exposes audiences’ willingness to pay much more than the original cost of tickets.

“It blames Live Nation and Ticketmaster for high service fees, but ignores the fact that Ticketmaster only reimburses a modest portion of those fees. In fact, primary ticket sales are one of the cheapest digital distributions in the economy.”

You can read Live Nation’s full response here.

According to the complaint, Live Nation-Ticketmaster “unlawfully maintained monopolies in several concert promotions and major ticketing markets and engaged in other exclusionary conduct affecting live performance venues, including arenas and amphitheaters.”

The complaint also alleged Live Nation-Ticketmaster’s alleged anti-competitive conduct “creates even more barriers for competitors to compete on a rules-based basis.”

“We allege that Live Nation relies on unlawful, anticompetitive conduct to exercise its monopoly control over the live events industry in the United States at the expense of fans, artists, smaller promoters and venue operators.”

Attorney General Merrick B. Garland.

“We allege that Live Nation relies on unlawful, anticompetitive conduct to exercise its monopoly control over the U.S. live events industry at the expense of fans, artists, smaller promoters and venue operators,” said Attorney General Merrick B. Garland.

“As a result, fans pay more in fees, artists have fewer opportunities to play shows, smaller promoters are squeezed out and venues have less real choice in ticketing services. It is time to part ways with Live Nation-Ticketmaster.”

“Today’s action is a step forward in making the live music era more accessible to fans, artists and the industry that supports them.”

Deputy Attorney General Lisa Monaco

Deputy Attorney General Lisa Monaco added: “Today’s announcement reflects the Department of Justice’s latest efforts to combat corporate misconduct.

“Our fight against corporate misconduct includes an intense focus on anti-competitive behavior that harms consumers, workers and businesses of all kinds. Today’s complaint alleges that Live Nation-Ticketmaster engaged in anti-competitive conduct to assert its dominance in the live concert market and serve as a gatekeeper for the entire industry.

“Today’s action is a step forward in making the live music era more accessible to fans, artists and the industry that supports them.”

Elsewhere in Live Nation’s response on Thursday, the concert giant said that “the Department of Justice’s lawsuit will not solve fans’ concerns about ticket prices, service fees and access to in-demand programming.”

It continued: “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 constantly is decreasing

“Ticketmaster Market Share and 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.”Music business around the world