Justice Department Sues Ticketmaster and Live Nation for Monopoly Practices
The Justice Department Sues Ticketmaster and Live Nation for Monopoly Practices
In a groundbreaking move, the Justice Department has filed a sweeping antitrust lawsuit against Ticketmaster and its parent company, Live Nation Entertainment. The lawsuit, filed in federal court in Manhattan, accuses the companies of running an illegal monopoly over live events in America, driving up prices for fans and stifling competition in the industry.
The lawsuit, brought with the support of 30 state and district attorneys general, aims to dismantle the monopoly that Ticketmaster and Live Nation have established, which has been squeezing out smaller promoters, hurting artists, and burdening ticket buyers with excessive fees. Attorney General Merrick Garland stated, “It’s time for fans and artists to stop paying the price for Live Nation’s monopoly. It is time to restore competition and innovation in the entertainment industry. It is time to break up Live Nation-Ticketmaster.”
The government’s case against Live Nation includes allegations of anti-competitive practices such as using threats and retaliation to control virtually every aspect of the industry, from concert promotion to ticketing. This control has resulted in a myriad of fees for fans, making live music events less accessible to the general public.
Ticket buyers Ricky Palitti and Jacob DeLong shared their experiences of paying exorbitant prices for concert tickets through Ticketmaster, citing the added fees as a significant factor in the high costs. Palitti expressed frustration, stating, “I think tickets have definitely gone up in price, but I also think that all the different fees that Ticketmaster places on an order definitely hikes the price up, for sure.”
Live Nation has denied violating antitrust laws and dismissed the lawsuit as not addressing the core issues that fans care about, such as ticket prices, service fees, and access to in-demand shows. The company vowed to defend itself against the allegations made by the Justice Department.
Legal experts believe that the Justice Department has a strong case against Live Nation and Ticketmaster. The potential breakup of the companies, along with other remedies to promote competition, could lead to lower ticket prices, give artists more agency in choosing venues, and boost the success of smaller promoters in the long run.
The lawsuit against Ticketmaster and Live Nation is part of the Biden administration’s aggressive antitrust enforcement efforts, targeting companies accused of engaging in illegal monopolies that harm consumers and stifle competition. This latest action underscores the administration’s commitment to promoting fair competition and protecting consumers in various industries.
