What We Know About the Giant Ticketmaster–Live Nation Lawsuit
In recent years, many music and sports lovers have fumed at the widespread control that Ticketmaster has on event admissions. Last year, Congress took up the issue in a high-profile Senate hearing looking into Ticketmaster's apparent domination of the ticket sales industry.
Now, the U.S. Department of Justice is stepping in. On May 23, the nation's top law enforcement agency filed a lawsuit against Ticketmaster and its parent company Live Nation Entertainment in an attempt to break up what it calls a monopoly on live event ticket sales.
When did Ticketmaster and Live Nation first merge?
Live Nation and Ticketmaster first struck a deal to merge back in 2009. It was a $2.5 billion agreement that eventually received approval from the U.S. Department of Justice in 2010.
Part of the Justice Department's initial permission for Live Nation and Ticketmaster to merge was for Live Nation to agree not to retaliate against concert venues for using other ticket companies for 10 years. A 2019 DOJ investigation found that Live Nation had repeatedly violated that agreement, prompting the DOJ to extend the prohibition until 2025.
Why is the Department of Justice suing Ticketmaster and Live Nation?
The Department of Justice filed its sweeping antitrust lawsuit with the support of 30 state and district attorneys general. In its suit, the DOJ claims the merged company is hurting artists and ticket buyers as well as smaller promoters and venues.
"It’s time for fans and artists to stop paying the price for Live Nation’s monopoly,” Attorney General Merrick Garland said, per The Associated Press. “It is time to restore competition and innovation in the entertainment industry. It is time to break up Live Nation–Ticketmaster. The American people are ready for it."
According to Garland, Live Nation has been able to "suffocate the competition" by controlling virtually every part of the live events industry from concert promotion to ticketing. Live Nation's anti-competitive practices reportedly include using long-term contracts to keep venues from choosing rival companies, blocking venues from using multiple ticket sellers, and threatening venues saying they could lose money if they don't use Ticketmaster. As a result, systems like these produce an "endless list of fees on fans."
"Live music should not be available only to those who can afford to pay the Ticketmaster tax,” Assistant Attorney General Jonathan Kanter of the DOJ's Antitrust Division said. "We are here today to fight for competition so that we can reopen the doors to the live music industry for all."
What has the company said about the move?
Live Nation has repeatedly denied over the years that it's violating any antitrust laws. In response to the DOJ's lawsuit, the company said the action "won’t solve the issues fans care about relating to ticket prices, service fees and access to in-demand shows."
“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," Live Nation said, vowing to fight "against these baseless allegations."
What happens next to Ticketmaster and Live Nation?
For now, the lawsuit will have to move through federal court in Manhattan, but a breakup of Live Nation and Ticketmaster is entirely possible down the line.
It's not the only possible outcome, however. The conglomerate might be able to skirt having to split entirely by avoiding some exclusive deals that kneecap competition and drive up ticket prices for fans.