The U.S. Justice Department has filed a lawsuit against Live Nation and Ticketmaster to separate the companies amid skyrocketing concert ticket prices.
In a statement, the Justice Department revealed it has teamed up with 30 state and district attorneys general to file the civil antitrust lawsuit against Live Nation Entertainment Inc. and its wholly-owned subsidiary, Ticketmaster LLC.
Both are being sued for “monopolization and other unlawful conduct that thwarts competition in markets across the live entertainment industry.”
The lawsuit includes a request for structural relief, seeks to restore competition in the live concert industry, provide better choices at lower prices for fans, as well as open venue doors for working musicians and other performance artists.
The Justice Department’s complaint also alleges that Live Nation-Ticketmaster unlawfully exercises its monopoly power in violation of Section 2 of the Sherman Act. Due to this action, U.S. music fans are deprived of “ticketing innovation” and are forced to use outdated technology. This is all while paying for tickets than fans in other countries.
Along with the ticketing monopoly, the companies also exercise power over performers, venues, and independent promoters to prevent any competition. To do this, the companies impose “barriers” to limit the entry and expansion of competitors.
The lawsuit also alleges that Live Nation-Ticketmaster practices fortify and protect its “flywheel.”
The flywheel is described as Live Nation-Ticketmaster’s “self-reinforcing business model that captures frees and revenue from fans and sponsorship.”
U.S. Attorney General Alleges Live Nation Relies on ‘Unlawful, Anticompetitive Conduct’
Also in the statement, U.S. Attorney General, Merrick B. Garland, alleged Live Nation relies on “unlawful, anticompetitive conduct to exercise its monopolistic control” over the U.S. live events industry. This is all at the cost of fans, artists, smaller promoters, and venue operators.
“The result is that fans pay more in fees, artists have fewer opportunities to play concerts, smaller promoters get squeezed out,” Garland stated. “And venues have fewer real choices for ticketing services. It is time to break up Live Nation-Ticketmaster.”
Deputy Attorney General, Lisa Monaco, also spoke out about the lawsuit. “Our fight against corporate wrongdoing includes an intense focus on anticompetitive conduct,” Monaco declared.
“Which disadvantages consumers, workers, and businesses of all kinds. Today’s complaint alleges that Live Nation-Ticketmaster has engaged in anticompetitive conduct to cement their dominance of the live concert market and act as the gatekeeper for an entire industry.”
Monaco added that the lawsuit is a “step forward” in making live music more accessible for the fans, the artists, and the industry that supports them.