The Justice Department, along with 29 states and the District of Columbia, is suing Live Nation Entertainment over claims that it has illegally maintained a monopoly in the live entertainment industry. The lawsuit accuses Live Nation of forcing venues into exclusive ticketing contracts, pressuring artists to use its services, and threatening rivals with financial retribution. The government argues that these tactics have resulted in higher ticket prices for consumers and stifled innovation and competition in the industry.
Live Nation, which owns Ticketmaster, is a dominant force in the entertainment industry with control over concert promotion, ticketing, artist management, and operation of numerous venues and festivals worldwide. The company controls a significant portion of concert promotions and primary ticketing at major venues in the United States. Critics have accused Live Nation of engaging in practices that harm rivals and drive up ticket prices and fees. Lawmakers and fans have also raised concerns about the company’s monopoly status, leading to a congressional hearing on the matter.
In response to the lawsuit, Live Nation has denied being a monopoly and claims that breaking it up would not result in lower ticket prices or fees. The company argues that artists and sports teams are responsible for setting ticket prices, and other partners such as venues take the majority of surcharges. Live Nation contends that its market share for ticketing has decreased in recent years as it competes with rivals for business. The company’s executive vice president of corporate and regulatory affairs has accused the Justice Department of filing the lawsuit due to “intense political pressure.”
American regulators have been taking action against major companies that wield significant power over consumers. The lawsuit against Live Nation is part of a broader trend of challenging monopolistic practices in various industries. The Justice Department has recently targeted companies like Apple and Google for antitrust violations. Live Nation’s acquisition of Ticketmaster in 2010 came with certain conditions outlined in a legal agreement, but the government found in 2019 that Live Nation had violated those terms.
The Justice Department alleges that Live Nation engaged in anticompetitive behavior by exploiting relationships with partners to keep competitors out of the market. The company was accused of threatening venues with losing access to popular tours if they did not use Ticketmaster, and of blocking artists from using its venues if they did not work with the company. Live Nation’s acquisition of smaller companies was also seen as a strategy to eliminate threats to its dominance in the industry. The lawsuit highlights the company’s close ties with the Oak View Group, which the government argues has influenced venues to sign deals with Ticketmaster.
The Justice Department’s investigation of Live Nation began in 2022 as the company increased its lobbying efforts in Washington. Live Nation hosted a party in Washington ahead of the annual White House Correspondents’ Association dinner, showcasing its positive impact on the economy. Under pressure, the company announced that it would display all charges, including extra fees, for shows at its venues. A former chairman of the Federal Trade Commission suggested that the lawsuit against Live Nation would be a rebuke of earlier antitrust officials who allowed the company to grow unchecked.
