The Department of Justice will take antitrust action against Ticketmaster’s parent company, Live Nation

The Justice Department expects to file an antitrust lawsuit against entertainment conglomerate Live Nation as early as Thursday, multiple sources familiar with the matter confirmed to CBS News.

Several state attorneys general will join the federal government. Prosecutors are expected to question the practices of Ticketmaster’s parent company and may try to force a change in the way the company does business, sources said. In many cases, when the Justice Department sues over antitrust issues, it tries to get a judge to force a divestment of a company or change the way it operates.

The Justice Department declined to comment. Live Nation did not respond to CBS News’ request for comment.

The antitrust action was first reported by the Washington Post.

The decision follows a years-long investigation by the Department of Justice’s antitrust division. In 2022, CBS News confirmed that the Department of Justice was already looking into the company and its Ticketmaster unit before the disastrous mishandling of Taylor Swift’s Eras Tour ticket sales.

In November 2022, Ticketmaster website it crashed during the pre-sale period for the Eras Tour, sparking outrage from fans who waited hours for tickets, only to be disappointed.

The department’s investigation focused on whether Live Nation abused its dominance in the ticket market.

According to The New York Times, which first reported on the investigation, the Justice Department’s antitrust division contacted music venues and ticketing industry participants to learn more about Live Nation’s methods, focusing on whether the company had a monopoly on the industry.

During a January 2023 Senate hearing, artists testified about the impact Live Nation had on them. Clyde Lawrence of the band Lawrence testified that Live Nation is simultaneously a promoter, venue and ticketing company.

“Because Live Nation owns the venue, contributes money to the show and sells the tickets, it has enormous power in negotiations with the artists,” he told the panel, giving an example: For one show, Lawrence set the ticket price at $30. After Ticketmaster added a 40% fee, fans were paying $42 per ticket. After paying for the facility, the band earned $12 per ticket, about half of which went to cover tour costs.

“That gives us $6 for an eight-person team, before taxes, and we also have to pay our own health insurance,” Lawrence said.