The Justice Department is preparing to file an antitrust lawsuit against Live Nation, an entertainment conglomerate that owns Ticketmaster, as early as Thursday. This legal challenge will be joined by several state attorneys general. The lawsuit is expected to challenge Live Nation’s business practices and may seek to force changes in how the company operates. In many antitrust cases, the Justice Department aims to get a judge to mandate divestments within a company or alter its operations. Live Nation and the Justice Department declined to comment on the matter.
The investigation into Live Nation by the Justice Department’s antitrust division has been ongoing for several years. The probe intensified after Ticketmaster’s website crashed during a pre-sale event for Taylor Swift’s Eras Tour in November 2022, leading to widespread fan outrage. The focus of the investigation is whether Live Nation has been abusing its dominant position in the ticket industry. The Justice Department has been reaching out to music venues and industry participants to gather information about Live Nation’s practices, particularly examining whether the company has a monopoly in the industry.
During a Senate hearing in January 2023, artists testified about the significant influence Live Nation holds over them. Lawrence, a member of the band Lawrence, highlighted how Live Nation’s multiple roles as a promoter, venue owner, and ticket seller give it significant negotiating power over artists. He provided an example of how ticket prices set by the band ended up being significantly higher for fans due to Ticketmaster fees and facility costs. This testimony showcased the financial challenges faced by artists due to Live Nation’s control over various aspects of the music industry.
Live Nation’s control over the ticketing industry has been a longstanding issue, with previous complaints from artists and fans dating back to the 1990s. Pearl Jam, for example, raised concerns about Ticketmaster’s exclusive contracts with major venues, limiting options for artists and fans in ticket sales. Despite efforts by Pearl Jam and others to challenge Ticketmaster’s dominance, they were unsuccessful in their legal battles. The current antitrust lawsuit against Live Nation represents a renewed effort to address these longstanding concerns about monopolistic practices in the ticketing industry.
Overall, the impending antitrust lawsuit against Live Nation reflects ongoing concerns about the company’s market dominance and its impact on artists, venues, and fans. By challenging Live Nation’s business practices, the Justice Department and state attorneys general aim to promote competition and fairness in the ticketing industry. This legal action follows years of investigation into Live Nation’s activities and comes after high-profile incidents such as the ticketing issues during Taylor Swift’s Eras Tour. The outcome of this lawsuit could have significant implications for the future of the entertainment and ticketing industries.
