The Justice Department and a group of states are gearing up to take on Live Nation Entertainment, the concert giant that owns Ticketmaster, in a lawsuit that could shake up the live entertainment industry. The lawsuit, set to be filed as soon as Thursday, accuses Live Nation of illegally maintaining a monopoly in the industry, according to sources familiar with the matter.
The government’s case will focus on Live Nation’s alleged use of Ticketmaster’s exclusive ticketing contracts with concert venues to solidify its power and stifle competition. By controlling concert tours, venue management, and other related businesses, Live Nation has been able to raise prices and fees for consumers, limit innovation, and harm competition, the sources said.
Live Nation’s dominance in the industry is undeniable, with Ticketmaster alone selling 600 million tickets a year to events worldwide. The company’s reach extends to concert promotion, artist management, and the operation of numerous venues and festivals globally. Despite accusations of anti-competitive practices and price gouging, Live Nation has denied setting high prices and fees, placing the blame on artists and major venues instead.
The impending lawsuit comes on the heels of increased scrutiny of major companies by American regulators, who are testing antitrust laws against the growing power wielded by these corporations. Live Nation’s acquisition of Ticketmaster in 2010 was allowed by the Justice Department under certain conditions, but a 2019 investigation found that the company had violated those terms.
As the legal battle looms, Live Nation has ramped up its lobbying efforts, spending millions on federal lobbying in recent years. The company’s lavish party in Washington and promises to display all charges, including extra fees, for shows at its venues are seen as attempts to appease regulators and the public.
A former chairman of the Federal Trade Commission has called the potential lawsuit against Live Nation a rebuke of past antitrust officials who allowed the company to grow unchecked. The outcome of this legal showdown could have far-reaching implications for the live entertainment industry and the future of ticketing practices.
