The US Justice Department (DOJ) is gearing up to take on entertainment giant Live Nation in a competition lawsuit that could shake up the live entertainment industry. According to sources familiar with the matter, the DOJ is expected to file the lawsuit as early as Thursday, challenging Live Nation’s business practices, particularly those of its subsidiary Ticketmaster.
When the DOJ takes legal action over competition issues, it typically aims to force a company to make significant changes to its operations. In this case, prosecutors are likely to allege that Live Nation has stifled competition, limited customer choice, and driven up prices in the live entertainment market.
The federal government will be joined in its legal challenge by several state attorneys general, indicating the widespread concern over Live Nation’s dominance in the industry. The lawsuit follows a years-long investigation by the DOJ’s anti-trust division, which has been closely scrutinizing Live Nation and Ticketmaster.
Live Nation Entertainment, formed by the merger of Live Nation and Ticketmaster in 2010, has faced mounting criticism from various stakeholders, including fans, artists, and lawmakers. The company’s alleged control over live entertainment events in the US and globally has sparked controversy and calls for regulatory intervention.
In a notable incident in November 2022, Ticketmaster’s website crashed during a pre-sale for Taylor Swift’s Eras Tour, angering fans and highlighting concerns about the company’s operations. Following reports of the impending DOJ lawsuit, Live Nation’s shares took a hit, falling more than 6% in after-hours trading.
As the legal battle unfolds, the outcome could have far-reaching implications for the live entertainment industry and the future of competition in the sector. Stay tuned for updates on this developing story.
