Live Nation denies claims of “monopoly power” following Department of Justice antitrust lawsuit

Live Nation and Ticketmaster are the protagonists of a newly announced but long-awaited Department of Justice antitrust lawsuit. While we’ve seen an outpouring of support for action against the pair, Live Nation abhors claims that it exercises “monopoly power” with its Ticketmaster subsidiary.

Following news of the lawsuit, Live Nation’s Dan Wall, who actively argued that high ticket prices are simply the natural progression of the events industry and is eschewing the entertainment giant’s responsibility at all costs, spoke out, maintaining that concert promoters and ticketing companies have no control over ticket prices and are therefore not responsible for the excessive prices.

| READ: Surge in concert ticket prices driven by artists and promoters |

“(The Department of Justice’s complaint) 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 reveals the public’s willingness to pay much more than the original cost of tickets,” Wall said. “It 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.”

Additionally, Wall disagreed with Live Nation and Ticketmaster’s accusations of operating as a monopoly, noting that “the defining feature of a monopoly is monopoly profits derived from monopoly pricing” and “Live Nation does not fit the profile in any way.”

“Ticketmaster fees are no higher than elsewhere, and often lower,” Wall said. “Even when we factor in sponsorships, the advertising activity that helps keep ticket prices low, the company’s overall net profit margin is among the lowest-grossing S&P 500 companies.”

Wall argued that “trend lines confirm Live Nation’s lack of market power” and “the company is profitable and growing because it helps grow the industry, not because it has market power.”

However, Live Nation made it clear that their business was booming last year; since returning to the market after the pandemic, the entertainment giant has been on a huge profit streak, reporting the highest, record revenues in 2023. Last year was the “biggest year in the company’s history,” underscoring its power over the entertainment industry. The first quarter of 2024 was no exception, with Live Nation reporting revenue growth, up 21% from the prior-year quarter to $3.8 billion.

Walls’ statements also deny the company’s alleged past anti-competitive behavior. Most notably, the Barclays Center in Brooklyn, New York, turned to SeatGeek as its 2021 ticket seller, only to backtrack a year later – a move that many believed was due to the promotional giant holding off on high-profile tours from Brooklyn – sending them instead this to the UBS Arena further east of the city, where the Ticketmaster building is located.

Nevertheless, Live Nation’s statement released after the lawsuit was filed further suggests that the Justice Department is more of a public relations effort than actually streamlining the ticket-purchasing process for fans. Read their full statement below:

“The Department of Justice’s lawsuit will not solve fans’ concerns about ticket prices, service fees and access to in-demand programming,” the statement reads. “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.”

| READ: Consumer advocates praise antitrust lawsuit against Live Nation |

Despite Live Nation’s suspicious reaction and attempt to shift blame elsewhere, support for the Justice Department’s antitrust lawsuit is quite strong. While several consumer advocates expressed their appreciation for the lawsuit – including the Progressive Policy Institute, the American Economic Liberties Project and the Fan Fairness Coalition – 29 U.S. states also joined the suit as co-plaintiffs. These states represent the overwhelming majority of the U.S. population, accounting for 80% of the country’s population.

| READ: From Eras Tour to DOJ Lawsuit: Swifties’ Take on Breaking Up Live Nation-Ticketmaster |

Most notably, concert-goers across the United States, especially Taylor Swift fans, shared their support for the Department of Justice. Ticket sales for Swift’s Eras Tour – dubbed “The Great War” – caused complete chaos among millions of fans around the world and helped spark a Department of Justice investigation into Live Nation and Ticketmaster. Fans said their complaints were finally being heard and a step in the right direction.