US Department of Justice and Ohio Attorney General Slam Ticketmaster, Live Nation • Ohio Capital Journal

Biden Ohio Department of Justice Attorney General Dave Yost and a bipartisan group of 29 attorneys general are accusing the company that owns Ticketmaster and Live Nation of violating federal antitrust law.

The company is already well-known for insulting customers by calling its high mandate fees “convenience fees,” but the lawsuit seeks to invalidate a merger that was approved just 14 years ago.

The lawsuit, filed Thursday in U.S. District Court for Southern New York, accuses Live Nation Entertainment of using its dominance in several parts of the entertainment industry to position itself as a big middleman, driving up prices, starving out the artists whose patrons pay to watch. The lawsuit accuses the company of using its dominant ownership of the most desirable concert halls, ticketing platform and concert promotion activities to attract artists and patrons to its services and completely exclude competition.

“Live Nation maintains and exploits its power through a coordinated pattern of anticompetitive conduct that serves multiple purposes: expanding the scope and reaching into every crevice of an increasingly complex and interconnected ecosystem, eliminating rivals, further increasing barriers to entry and impeding competition on merits,” the lawsuit said . “Every act in itself is an exclusion. But these laws also work together across the ecosystem, reinforced by flywheels and economies of scale to increase the anti-competitive power of the program.”

The lawsuit sought monetary penalties and forced Live Nation to spin off Ticketmaster, a merger that federal authorities allowed in 2010 amid competition concerns.

In an email, Live Nation Entertainment denied the allegations.

“The Department of Justice’s lawsuit will not address fans’ concerns about ticket prices, service fees and access to in-demand programming,” the company said in an email. “Calling Ticketmaster a monopoly may be a PR victory for the Justice Department in the short term, but it will lose in court because it ignores basic principles of the live entertainment economy, such as the fact that most service fees go to venues and that competition continually erodes market share and Ticketmaster profit margin.”

The company added: “Our growth comes from helping artists tour the world, creating lasting memories for millions of fans and supporting local economies across the country by maintaining high-quality jobs. We will defend ourselves against these baseless allegations, use this opportunity to shine a light on the industry, and continue to push for reforms that truly protect consumers and artists.”

The lawsuit alleges that Live Nation’s conduct violates federal regulations Sherman Antitrust Actis intended to protect both fans and artists, said Attorney General Merrick Garland.

“We allege that Live Nation relies on unlawful, anticompetitive conduct to exercise its monopoly control over the live events industry in the United States at the expense of fans, artists, smaller promoters and venue operators,” Garland said in a written statement. “As a result, fans pay more in fees, artists have fewer opportunities to play shows, smaller promoters are squeezed out and venues have less real choice in ticketing services. It is time to part ways with Live Nation-Ticketmaster.”

The lawsuit also says the company’s conduct violates Ohio rules Valentine’s Day Act.

Yost, an amateur musician himself, said people in his state deserved better than what they got from Live Nation.

“Ohioans deserve transparency, fair prices and vigorous competition,” he said in a written statement. “This lawsuit is a key step toward breaking the control that Live Nation and Ticketmaster have in the marketplace and ensuring that consumers and businesses are no longer at their mercy.”