The US Justice Department, along with 30 state and district attorneys general, filed a civil antitrust lawsuit against Live Nation Entertainment and its subsidiary, Ticketmaster on Thursday (May 23).
The DOJ says it is suing Live Nation for the alleged “monopolization and other unlawful conduct that thwarts competition in markets across the live entertainment industry”.
The lawsuit, which includes a request for structural relief, seeks to “restore competition in the live concert industry, provide better choices at lower prices for fans, and open venue doors for working musicians and other performance artists”.
The complaint, filed in the U.S. District Court for the Southern District of New York, alleges that Live Nation “unlawfully exercises its monopoly power” in violation of Section 2 of the Sherman Act.
As a result of its alleged conduct, the DOJ says that “music fans in the United States are deprived of ticketing innovation and forced to use outdated technology while paying more for tickets than fans in other countries”.
Additionally, the DOJ claims that “Live Nation-Ticketmaster exercises its power over performers, venues, and independent promoters in ways that harm competition. Live Nation-Ticketmaster also imposes barriers to competition that limit the entry and expansion of its rivals”.
In a statement published in response to the lawsuit, Live Nation Entertainment said: “The complaint — and even more so the press conference announcing it — attempt to portray Live Nation and Ticketmaster as the cause of fan frustration with the live entertainment industry”.
“We will defend against these baseless allegations, use this opportunity to shed light on the industry, and continue to push for reforms that truly protect consumers and artists.”
Live Nation
The post continued: “[The complaint] blames concert promoters and ticketing companies — neither of which control ticket prices — for high ticket prices.
“It ignores everything that is actually responsible for higher ticket prices, from increasing production costs to artist popularity, to 24/7 online ticket scalping that reveals the public’s willingness to pay far more than primary tickets cost.
“It blames Live Nation and Ticketmaster for high service charges, but ignores that Ticketmaster ret”ains only a modest portion of those fees. In fact, primary ticketing is one of the least expensive digital distributions in the economy.”
You can read Live Nation’s response in full here.
According to the complaint, Live Nation-Ticketmaster has “unlawfully maintained monopolies in several concert promotions and primary ticketing markets and engaged in other exclusionary conduct affecting live concert venues, including arenas and amphitheaters”.
The complaint further alleges Live Nation-Ticketmaster’s alleged anticompetitive conduct “creates even more barriers for rivals to compete on the merits”.
“We allege that Live Nation relies on unlawful, anticompetitive conduct to exercise its monopolistic control over the live events industry in the United States at the cost of fans, artists, smaller promoters, and venue operators.”
Attorney General Merrick B. Garland.
“We allege that Live Nation relies on unlawful, anticompetitive conduct to exercise its monopolistic control over the live events industry in the United States at the cost of fans, artists, smaller promoters, and venue operators,” said Attorney General Merrick B. Garland.
“The result is that fans pay more in fees, artists have fewer opportunities to play concerts, smaller promoters get squeezed out, and venues have fewer real choices for ticketing services. It is time to break up Live Nation-Ticketmaster.”
“Today’s action is a step forward in making this era of live music more accessible for the fans, the artists, and the industry that supports them.”
Deputy Attorney General Lisa Monaco
Deputy Attorney General Lisa Monaco added: “Today’s announcement reflects the latest efforts by the Justice Department to combat corporate misconduct.
“Our fight against corporate wrongdoing includes an intense focus on anticompetitive conduct — which disadvantages consumers, workers, and businesses of all kinds. Today’s complaint alleges that Live Nation-Ticketmaster have engaged in anticompetitive conduct to cement their dominance of the live concert market and act as the gatekeeper for an entire industry.
“Today’s action is a step forward in making this era of live music more accessible for the fans, the artists, and the industry that supports them.”
Elsewhere in Live Nation’s response on Thursday, the concert giant said that “The DOJ’s lawsuit won’t solve the issues fans care about relating to ticket prices, service fees, and access to in-demand shows.”
It continued: “Calling Ticketmaster a monopoly may be a PR win for the DOJ in the short term, but it will lose in court because it ignores the basic economics of live entertainment, such as the fact that the bulk of service fees go to venues, and that competition has steadily eroded
“Ticketmaster’s market share and profit margin. Our growth comes from helping artists tour globally, creating lasting memories for millions of fans, and supporting local economies across the country by sustaining quality jobs.
“We will defend against these baseless allegations, use this opportunity to shed light on the industry, and continue to push for reforms that truly protect consumers and artists.”Music Business Worldwide