Department of Justice calls for dissolution of Live Nation and Ticketmaster

The Justice Department is expected to file an antitrust lawsuit against Live Nation on Thursday

According to Bloomberg News, the Justice Department will call for the dissolution of Live Nation and Ticketmaster as part of an antitrust lawsuit expected to be filed on Thursday.

The lawsuit is expected to allege that Live Nation engaged in abusive practices designed to crush competition in the live event ticketing space.

The Justice Department first opened an antitrust investigation into Live Nation in early 2022, reportedly focusing on whether the company complied with a consent decree issued with the Justice Department after its 2010 merger with Ticketmaster in which Live Nation promised not penalize concert venues that used competing ticketing platforms by denying access to tours promoted by Live Nation. The Justice Department had already found evidence of Live Nation engaging in such conduct after opening an investigation in 2018. Under the terms of a subsequent settlement reached in 2019, Live Nation agreed to extend the consent decree through 2025 and reimbursed the Justice Department for the costs of the investigation.

In the latest investigation, the Department of Justice looked into, among other things, Live Nation’s dynamic pricing and resale policies, contracts with Ticketmaster-only venues, and exclusive contracts with touring artists. Ticketmaster currently has over 80% of the US primary ticket sales market.

In a previous statement responding to reports of a possible lawsuit, a Live Nation/Ticketmaster representative said: “Ticketmaster faces more competition today than ever, and the terms of its venue agreements demonstrate that it has nothing to do with monopoly power.”

Last week, the U.S. House of Representatives passed the TICKET Act, which would introduce a number of rules to increase transparency in the ticketing industry, including requiring all ticket sellers – both primary and secondary – to provide the “total” ticket price of a ticket (along with an itemized list of all fees ) before executing the transaction. The legislation would also deter speculative ticket sales by prohibiting sellers from selling tickets if they don’t actually have them on hand; prohibit deceptive marketing tactics. The bill must now be voted on in the U.S. Senate and signed by President Joe Biden before it becomes law.

This is a developing story…