The Justice Department is cracking down on entertainment giant Live Nation, filing a lawsuit seeking a breakup of the company over antitrust concerns. US prosecutors and states allege that Live Nation used its Ticketmaster ticketing monopoly to stifle competition, following a two-year investigation.
The lawsuit comes 14 years after the DOJ approved the merger between Live Nation and Ticketmaster, a move that critics say led to exorbitant fees and unfair practices. Live Nation’s stock dropped 5% as the suit was filed in the Southern District of New York.
Attorney General Merrick Garland accused Live Nation of monopolistic control over the live events industry, leading to higher fees for fans, fewer concert opportunities for artists, and less choice for venues. Garland stated, “It is time to break up Live Nation.”
Live Nation refuted the allegations, with executive Dan Wall arguing that the company is not to blame for high ticket prices. Wall pointed to increasing production costs, artist popularity, and online ticket scalping as factors driving up prices.
The lawsuit marks a significant escalation in the government’s efforts to rein in corporate power in the entertainment industry. Stay tuned for updates on this developing story.
