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Attorney General Schwalb Joins Federal Antitrust Lawsuit Against Live Nation

Posted on by darion

WASHINGTON – Attorney General Brian L. Schwalb joined the U.S. Department of Justice (DOJ) and a bipartisan coalition of 30 state attorneys general in filing an antitrust lawsuit against Live Nation Entertainment, Inc., the owner of Ticketmaster, alleging that the companies illegally monopolized the live streaming entertainment industry, raising the prices neighborhood residents pay for live performances.

“The District’s vibrant live entertainment scene is critical to our local economy and culture, from fans who come to see their favorite artists to the thousands of workers who work at D.C. venues.” said Attorney General Schwalb. “Over the years, Live Nation has grown to dominate almost every corner of the live entertainment ecosystem, gaining control of the industry that has eliminated any significant competition. Nearly every major concert hall in the District is covered by a Ticketmaster contract, resulting in concertgoers in the District paying exorbitant Ticketmaster fees to enjoy performances. My office will always fight to ensure District residents have access to free, fair markets that promote competition and choice.”

The district is home to over 20 music venues of varying sizes, from the Capital One Arena, which can accommodate over 20,000 fans, to more intimate venues. In 2022 alone, District residents and visitors spent $1.1 billion on live entertainment, and Ticketmaster sales data for this year show that the District had significantly higher Ticketmaster ticket sales per capita than any other state. Live Nation controls two of the most important parts of the live entertainment industry at District concert venues: ticket sales and artists. Live Nation is the exclusive reseller of tickets to almost all major venues in Washington. Live Nation is the dominant content provider for these properties because its monopoly on concert promotion means that neither artists nor venues have comparable, competitive alternatives to Live Nation. This means that for most shows in the district, Live Nation’s misconduct results in fans paying more to watch the show.

In a lawsuit filed in the U.S. District Court for… The Southern District of New York, the Department of Justice and the states allege that Live Nation:

  • Fans have been harmed by higher fees and limited the amount of information fans have about the ultimate cost of watching the show. Fans’ ticket purchasing experiences – from ticket purchase to show time – are also worse than they would be if the industry were competitive.
  • He maintained his monopoly in ticket markets by closing venues through restrictive, long-term, exclusive contracts and threatening that venues would lose access to Live Nation-controlled tours and artists if they signed with a competing ticket seller.
  • He used his extensive network venues to force artists to choose Live Nation as a promoter over their rivals, maintaining a monopoly on promotions.

The lawsuit asks the court to restore competition in the live entertainment industry by:

  • Securing financial compensation for the district, as well as for fans who were overcharged by Live Nation, leading them to pay more than they would otherwise have to pay in a competitive ticket market.
  • Prohibition Live Nation from engaging in anti-competitive practices.
  • Ordering Live Nation is getting rid of Ticketmaster

A copy of the complaint is available here.

The case was handled by Assistant Attorneys General Amanda Hamilton, Elizabeth Arthur and Mehreen Imtiaz; Ruff Fellow Cole Niggeman; and Section Chief Adam Gitlin of the Antitrust and Nonprofit Enforcement Section.

In joining the Justice Department’s complaint, AG Schwalb is joined by the attorneys general of Arizona, Arkansas, California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Hampshire, New Jersey, New York and North Carolina. Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin, Wyoming.

OAG Antitrust Enforcement Activities

OAG has a long history of holding companies accountable for antitrust violations that harm consumers in the District. Most recently, OAG filed a lawsuit in November 2023 against RealPage and 14 of the District’s largest landlords for conspiring to illegally raise rents for tens of thousands of D.C. residents. The OAG has also opposed anticompetitive mergers, such as those of Kroger and Albertsons, JetBlue and Spirit, Anthem and Cigna, Staples and Office Depot, and fantasy sports sites DraftKings and FanDuel.