The US Department of Justice files an antitrust lawsuit to break up Live Nation

On Thursday, the U.S. Department of Justice and more than two dozen states filed a lawsuit seeking to disband Live Nation. The Live Nation lawsuit alleged that it illegally inflated concert ticket prices and harmed artists along with its Ticketmaster unit. “It is time to break up Live Nation,” said U.S. Attorney General Merrick Garland.

Concert fans and politicians have been calling for years to reconsider Live Nation’s 2010 purchase of Ticketmaster, especially after the ticket seller’s 2022 botched sale for Taylor Swift’s first concert caused hours-long online lines, overcharging and poor conditions Work.

Live Nation lawsuit

US regulators have sued Live Nation, accusing the entertainment giant of using illegal tactics to maintain a monopoly on the live music industry.

Thursday’s Live Nation antitrust case underscores the aggressive approach President Joe Biden’s antitrust enforcement has taken. That’s because they’re trying to create more competition in a wide variety of industries, from Big Tech to health care to grocery.

Live Nation monopoly

Live Nation is “suffocating its competition,” said Garland, who cited Swift’s song during the lawsuit’s news conference. It relies on “unlawful, anti-competitive conduct to exert monopolistic control over the live events industry in the United States at the expense of fans, artists, smaller promoters and venue operators,” Garland said. He added that as a result, fans pay more in fees, artists have fewer opportunities to perform and smaller promoters are squeezed out.

Living Nation for a lawsuit

In the lawsuit, the Justice Department and the states asked the court to “order the divestiture of at least Ticketmaster along with any additional relief necessary to remedy any anticompetitive harm.”

Live Nation called the lawsuit a possible “short-term PR victory for the Justice Department” but said the entertainment company would prevail in court. The lawsuit “will not resolve important issues for fans related to ticket prices, service fees and access to in-demand programming.”

“The live events market is more competitive than ever before,” he added.

US MILKING sue Live Nation

The lawsuit says Live Nation directly manages more than 400 music artists and controls approximately 60% of concert promotions at major concert venues. It owns or controls more than 265 concert venues in North America and, through Ticketmaster, controls approximately 80% or more of major concert tickets at large venues.

In a lawsuit filed in the Southern District of New York, the Justice Department argued that Live Nation and Ticketmaster’s “overwhelming scope” allowed them to “insert themselves at the center and on the periphery of virtually every aspect of the live music ecosystem.”

A bipartisan group of attorneys general, including those from New York, California, Florida and Texas, joined the Justice Department’s lawsuit.

Ticketmaster merges with Live Nation

In 2010, the Department of Justice approved Ticketmaster’s controversial merger with Live Nation, provided the combined company did not harm competition.

In 2020, a court extended most of the Justice Department’s oversight of the merger through 2025 because, the department said, Ticketmaster retaliated against stadiums and arenas that chose to use other ticketing companies.

The Justice Department said its previous case against Live Nation “attempted to protect what should be a dynamic, thriving industry.” The government alleged Live Nation has since demonstrated “additional, distinct and more expansive forms of anti-competitive conduct and exclusionary practices.”

Live Nation Shares

Live Nation shares fell 8.3% on Thursday afternoon. Following the report, Live Nation shares fell as much as 9.3% to $92, although they recovered somewhat.