The U.S. Department of Justice has filed a major antitrust lawsuit against Ticketmaster and its parent company, Live Nation Entertainment, accusing them of running an illegal monopoly over live events in America.
The lawsuit, supported by 30 state and district attorneys general, aims to break up the monopoly, which they claim is stifling competition, hurting artists, and forcing fans to pay excessive fees.
Attorney General Merrick Garland stated that it is time for fans and artists to stop paying the price for Live Nation’s monopoly and to restore competition and innovation in the entertainment industry. The Justice Department has accused Live Nation of using various tactics, including threats and retaliation, to suppress competition and maintain control over nearly every aspect of the industry, from concert promotion to ticketing.
Live Nation has denied violating antitrust laws for years and stated that the lawsuit will not address the issues fans care about, such as ticket prices, service fees, and access to high-demand shows. The company claims that most service fees go to venues and that outside competition has steadily eroded Ticketmaster’s market share. Live Nation plans to defend itself against the allegations and push for other reforms.
The Justice Department alleges that Live Nation’s anti-competitive practices include using long-term contracts to prevent venues from choosing rival ticketers, blocking venues from using multiple ticket sellers, and threatening venues with the loss of money and fans if they do not choose Ticketmaster. The lawsuit also claims that Live Nation threatened to retaliate against one firm if it didn’t stop a subsidiary from competing for artist promotion contracts.
This lawsuit is the latest example of the Biden administration’s aggressive antitrust enforcement approach targeting companies accused of engaging in illegal monopolies. Ticketmaster, which merged with Live Nation in 2010, is the world’s largest ticket seller, distributing over 620 million tickets through its systems in 2023. The company owns or controls more than 265 of North America’s concert venues and dozens of top amphitheaters.
Ticketmaster has faced outrage from fans and artists over the years, most recently when its site crashed during a presale event for a Taylor Swift stadium tour in November 2022.
The Justice Department had previously investigated Live Nation in 2019 and found that the company had repeatedly violated an agreement not to retaliate against concert venues for using other ticket companies.
The outcome of this lawsuit could have significant implications for the live entertainment industry and the way fans purchase tickets for concerts and other events.
The Associated Press contributed to this article.