The U.S. Department of Justice filed an antitrust lawsuit against Live Nation on that date

The US Department of Justice (DOJ) and a group of states are preparing to file a lawsuit against Live Nation Entertainment, the owner of Ticketmaster, possibly seeking its division, Bloomberg News reported on Wednesday, detailing the next step in the antitrust crusade while insisting the initiative could harm fans music.

Ticketmaster has been accused of monopolizing concert ticket sales, and several sources told Reuters that the Justice Department is working on the case.

For years, concert-goers and politicians have called on the government to reassess its options for resolving the 2010 merger between Live Nation and Ticketmaster, especially after Taylor Swift’s shocking ticket sales fiasco for her current tour.

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The Department of Justice is seeking to disband Live Nation

Bloomberg said the lawsuit was expected to be filed yesterday in the Southern District of New York.

This approach is embraced by President Joe Biden’s antitrust enforcement authorities, suggesting a willingness to turn things on their head in efforts to increase competition in a number of sectors such as Big Tech, health care and grocery, among others.

It also covers the role and roar of fans, mainly paying attention to Taylor Swift’s fans, Swifties.

In 2022, Live Nation faced backlash from the public after it was overwhelmed by high demand for tickets to Swift’s 2023 concerts. Due to the influx of users and bots, the ticketing platform became overwhelmed beyond its capacity, with the company planning to sell some tickets, she was forced to abandon some of her plans. Potential consumers had to spend up to eight hours online waiting for their turn.

Many Swifties have reported that they have been dropped multiple times by Ticketmaster when trying to purchase tickets.

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Ticketmaster has admitted that it suffers from attacks by bots and scalpers, but fans have also reported that tickets are overpriced and, in most cases, poor service.

In January 2023, US senators held a hearing in response to the ticket sales fiasco, criticizing Live Nation for its lack of transparency and failure to prevent bot purchases of tickets.

Live Nation shares fall as Justice Department prepares antitrust lawsuit

The upcoming lawsuit filed by the Department of Justice could include any number of remedies, some of which could include forcing Live Nation to refrain from any unlawful conduct, including the rather rare but preferred intervention of liquidating the entire company.

The legal action also comes after the Justice Department in 2010 gave the green light, with certain conditions, to the highly publicized merger of Ticketmaster and Live Nation. The terms were intended to address pro-competitive conflict and ensure that the combined company could not dominate the market.

However, in 2020, the court extended control over the described merger until 2025 because Ticketmaster behaved mischievously, provoking stadiums and arenas to cooperate with other ticket sales services.

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In the past, the company has strongly insisted that its activities are legal, confirming that the investigation was led by individuals with business rivals to the ticket sellers.

Live Nation shares fell 7% in after-hours trading on news of the impending lawsuit.