DOJ Turns Antitrust Eyes on Live Nation – Ticketmaster

The U.S. Department of Justice (DOJ) has filed a federal antitrust lawsuit against Live Nation – Ticketmaster for “monopolizing markets in the live concert industry.” In a May 23, 2024, filing regarding the case, the DOJ alleged that Live Nation – Ticketmaster used aggressive tactics that forced customers to pay more for tickets while stifling competition from smaller businesses and limiting artists’ ability to obtain performances. The filing called these actions an example of “a monopolist devoting resources to strengthening its monopoly position and isolating itself from competition.”

The allegations include allegedly exploiting a “competitor-turned-partner” relationship with Oak View Group (OVG), which signed an agreement with Ticketmaster in 2021 to implement their technology at OVG venues; retaliating against potential rivals expected to enter the industry; threats against venues that partner with other competitors; claims that the company “locks in” live concert venues with long-term, exclusive contracts; preventing venues from using multiple ticket agents; restricting artists from performing at key venues unless they hire Ticketmaster as their promoter; and finally, acquiring smaller promoters and potential competitors.

The DOJ’s allegations are inconsistent with the nature of the ticketing and distribution industry. Ticketmaster takes a smaller share of ticket sales than the venues and artists themselves, and as noted in an April 12, 2018, Government Accountability Office report, “Other parties that play a role in the sale of event tickets, as discussed further in this report, include artists and their managers, booking agents, sports teams, producers, promoters, and venue operators (such as clubs, theaters, arenas, or stadiums).” According to Live Nation executive vice president Dan Brown, Ticketmaster regularly charges lower service fees than other ticketing sites such as SeatGeek and AXS, and earns profits that place it in the “lower tier of profitable S&P 500 companies.” The company provided the DOJ with data that refuted the market power allegations, but “it too much conflicted with their established narrative,” Brown said.

When the Obama administration approved the merger of Live Nation and Ticketmaster in 2010, the Justice Department predicted a “sick” ticketing industry characterized by “narrow” profit margins as performers gained more bargaining power to capture concert revenues. Contrary to those dire predictions, the industry has flourished and innovated since the merger, aside from a brief hiatus during the pandemic

On May 15, 2024, the House of Representatives passed H.R. 3950, the Ticketing Act, by a vote of 388 to 24. The bill, which was supported by ticket sellers including Live Nation – Ticketmaster and StubHub, as well as consumer groups and artists, would increase ticket price transparency by requiring primary and secondary ticket sellers to disclose at the beginning of the transaction all ticket costs, including the base price and all fees, including service, processing, shipping, and taxes. This price must also be disclosed in any advertising. Currently, fees are disclosed at the checkout, and buyers must browse numerous websites throughout the purchase process to compare prices. And the bill would only allow the sale of tickets that the seller has in their possession. Currently, sellers can list tickets they don’t have, causing anxious buyers to often wait until the day of the event, often within an hour or two of the event starting, to receive their tickets.

The companion Senate bill, S. 1303, was favorably noted by the Senate Commerce, Science, and Transportation Committee on April 26, 2023, and placed on the Senate calendar for September 9, 2023, but has not yet been voted on.

The Justice Department’s lawsuit will not increase competition in the ticketing market or lower prices for consumers. The prices consumers pay for tickets are set by artists and their business teams, not by Live Nation-Ticketmaster. There is already a large and competitive ticket resale market where consumers can buy tickets without using Ticketmaster on websites such as Seatgeek, StubHub and TickPick.

The lawsuit does not take into account the impact of the COVID-19 pandemic on ticket prices and demand. According to Live Nation – Ticketmaster, 145 million people attended a concert or sporting event at a Live Nation venue in 2023, a 20 percent increase from the 98 million people who attended in 2019.

The ticketing market is already large and competitive, and a DOJ lawsuit against Live Nation-Ticketmaster would be a waste of time and would not achieve its intended goals of increasing competition and lowering prices for consumers.

— GK To