The US Department of Justice is preparing to sue Live Nation, the largest concert promoter and ticketing website in the country, for antitrust violations. The lawsuit will allege that Live Nation used its market-leading position to harm competition for live events. Specific details of the planned lawsuit have not been uncovered, but shares of Live Nation dropped nearly 7% in premarket trading following the news. Both Live Nation and the Justice Department have not responded to requests for comment.
Ticketmaster faced backlash from US government officials and fans after a system meltdown prevented millions of people from purchasing tickets for Taylor Swift’s “Eras” tour in 2022. Lawmakers grilled Live Nation executives at a hearing in January 2023 over concerns that the company’s dominance in the industry was harming rivals, musicians, and fans. A lawsuit was later filed against Live Nation for “unlawful conduct” in the chaotic tour sale, with plaintiffs claiming that the ticketing giant violated antitrust laws.
Live Nation’s president and CFO, Joe Berchtold, defended the company’s practices at the hearing, stating that Ticketmaster does not set ticket prices or determine the number of tickets for sale. He also refuted suggestions that the company’s dominance has led to soaring fees, citing data showing that Live Nation controls only about 5% of venues in the United States. Despite this, rivals such as SeatGeek’s CEO have spoken out, claiming that venue owners fear losing Live Nation concerts if they do not use Ticketmaster.
The merger of Live Nation and Ticketmaster in 2010 created the self-proclaimed “largest live entertainment company in the world.” However, critics argue that the company’s dominance has stifled competition in the industry and harmed both fans and musicians. The upcoming lawsuit from the Department of Justice is likely to be a significant legal battle that could have far-reaching implications for the live events industry. The outcome of the case will be closely watched by industry stakeholders, fans, and lawmakers alike.
