Live Nation, Ticketmaster face antitrust lawsuit for monopolistic practices

The U.S. Department of Justice, joined by 29 states and the District of Columbia, has sued concert promoter Live Nation Entertainment and its wholly owned subsidiary Ticketmaster for allegedly engaging in anticompetitive practices.

They claim that Live Nation blocks ticket sales competition by using long-term, exclusive ticketing agreements with properties that can last for more than a decade, while simultaneously acquiring the properties themselves.

Don’t miss: Live Nation acquires majority stake in HK-owned Clockenflap

Live Nation-Ticketmaster currently controls at least 80% of primary ticket sales at major concert venues, directly manages over 400 artists, and controls over 60% of concert promotions nationwide. It also owns or controls more than 60% of large amphitheaters in the United States, according to a statement from the U.S. Department of Justice.

As a result of Live Nation’s monopoly control, fans pay more in fees, artists have fewer opportunities to play shows, smaller promoters are squeezed out and venues have less real choice in ticket sales, said Attorney General Merrick B. Garland.

“With exclusive contracts that cover more than 70% of concert ticket sales at major venues across the country, Ticketmaster can impose a seemingly endless list of fees on fans,” he said.

Fees include ticket fees, service fees, convenience fees, platinum fees, price list fees, order fees, processing fees, and payment processing fees, just to name a few.

“We also allege that Live Nation-Ticketmaster uses long-term ticketing agreements with venues and its control over those venues to unlawfully pressure artists to agree to use its promotional services,” Garland explained.

“In fact, Live Nation often sacrifices profits it could earn as a venue owner by leaving its properties empty rather than opening them to artists who do not use Live Nation’s promotional services – even during the peak concert season,” he said.

Garland further stated that while Live Nation uses anti-competitive tactics to coerce artists and venues into using its services and overcharges fans, it also engages in threats, retaliation and agreements with rivals to neutralize competition.

For example, Live Nation executives repeatedly criticized venue operator Oak View for trying to compete in 2016 and 2022, which led to them becoming partners rather than competitors.

In 2021, Live Nation threatened retaliation against private equity firm Silver Lake unless one of the latter’s portfolio companies, Teg, stopped competing with Live Nation for artist promotion contracts in the United States. Silver Lake tried to sell Teg altogether.

“It’s time for fans and artists to stop paying the price for Live Nation’s monopoly. It’s time to bring competition and innovation back to the entertainment industry. It is time to part ways with Live Nation-Ticketmaster,” Garland added.

While Garland stated that venues in other countries are not bound by Ticketmaster’s exclusive ticketing agreements, Last year, Live Nation acquired a majority stake in Clockenflap, a Hong Kong-based event organizer.

According to a statement at the time, this comes as events across Asia, particularly in Hong Kong, “are unfolding.”

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