The government is suing Ticketmaster for its monopoly on live events

WASHINGTON, DC: The Department of Justice, along with 30 state and district attorneys general, has filed a wide-ranging antitrust lawsuit against Ticketmaster and its parent company, Live Nation Entertainment, accusing them of having an illegal monopoly on live events in America.

The lawsuit, filed in federal court in Manhattan, seeks to dismantle a system they say stifles competition, harms artists and raises prices for fans.

The government’s case alleges that Live Nation uses a variety of tactics, including threats and retaliation, to maintain its dominance, which Attorney General Merrick Garland says results in “an endless list of fees charged to fans.” “It’s time to bring competition and innovation back to the entertainment industry,” Garland said, emphasizing the need to break up Live Nation-Ticketmaster.

Deputy Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division emphasized the impact on consumers: “Live music should not be available only to those who can afford to pay the Ticketmaster tax.”

Fans have expressed frustration with the high costs associated with Ticketmaster. Ricky Palitti and Jacob DeLong of Detroit recently spent about $1,200 on three tickets to a Shania Twain concert and about $370 for RuPaul’s Drag Race Live. DeLong criticized the additional fees, calling the overall costs “ridiculous.”

Live Nation has consistently denied violating antitrust laws. In response to the lawsuit, the company argued that calling Ticketmaster a monopoly is a PR move that ignores the economics of live entertainment. They argued that most of the service fees go to the facilities and that their market share has been destroyed by outside competition. The company said it would defend itself against “unsubstantiated allegations.”

The Justice Department’s lawsuit details several anticompetitive practices by Live Nation, including using long-term contracts to prevent venues from selecting competitors, blocking the use of multiple ticket sellers and threatening financial retaliation against companies competing for artist promotion deals. The government maintains that these practices allowed Live Nation to “stifle competition.”

Michael Carrier, a Rutgers Law School professor who specializes in antitrust litigation, believes the Justice Department has a strong case. He noted that Live Nation’s control over various aspects of the supply chain gives it significant power, which it uses to its advantage.

The lawsuit says breaking up Live Nation and Ticketmaster is a potential solution, as well as preventing exclusive, anti-competitive agreements. This could lead to lower ticket prices, more choice for artists in selecting venues, and greater success for smaller promoters.

Ticketmaster, which merged with Live Nation in 2010, has faced criticism for its handling of ticket sales for major artists including Taylor Swift and Bruce Springsteen. The company’s website crashed during pre-sales for Swift’s November 2022 stadium tour, leading to congressional hearings and legislative proposals aimed at protecting consumers.

The Justice Department had previously approved the merger on the condition that Live Nation would not retaliate against venues that used other ticketing companies. However, a 2019 investigation found that Live Nation had breached this agreement, resulting in an extension of the ban on such practices until 2025.

This lawsuit is part of a broader effort by the Biden administration to combat illegal monopolies that harm consumers. Similar actions have been taken against tech giants such as Apple, Google and Amazon. The outcome of this case could significantly impact the live events industry and change the way tickets are sold in the future.

John Kwoka, an economics professor at Northeastern University, noted that Live Nation and Ticketmaster have gone largely unscrutinized for 15 years, arguing for a breakup to protect consumers and promote competition. The ongoing legal battle will determine whether the government will be able to successfully dismantle the entertainment giant’s alleged monopoly.