The U.S. Department of Justice and 30 state and territory attorneys general filed a civil antitrust lawsuit against Live Nation Entertainment and its subsidiary Ticketmaster on Thursday (May 23).
The U.S. Department of Justice said it is suing Live Nation, accusing it of “monopolization and other unlawful conduct that impedes market competition throughout the live entertainment industry.”
The lawsuit includes a request for structural relief aimed at “restoring competition in the live concert industry, providing fans with better choices at lower prices, and opening venue doors to working musicians and other performing artists.”
The complaint, filed in the U.S. District Court for the Southern District of New York, accuses Live Nation of “illegally exercising its monopoly power” in violation of Section 2 of the Sherman Act.
The U.S. Department of Justice said that as a result of its alleged conduct, “music fans in the United States were deprived of ticketing innovation and forced to use outdated technology while paying more for tickets than fans in other countries.”
Additionally, the DOJ alleges that “Live Nation-Ticketmaster exercises power over performers, venues, and independent promoters in a manner that harms competition. Live Nation-Ticketmaster also creates barriers to competition that limit the entry and expansion of competitors.”
“The complaint, and specifically the press conference announcing the matter, attempts to paint Live Nation and Ticketmaster as the cause of fan frustration with the live entertainment industry,” Live Nation Entertainment said in a statement regarding the lawsuit.
“We will defend against these baseless accusations, use this opportunity to shine a light on the industry, and continue to push for reforms that truly protect consumers and artists.”
live country
The post continued: “[The complaint] Blame high ticket prices on concert promoters and ticketing companies – neither of which have control over ticket prices.
“It ignores all the factors that actually cause ticket prices to rise, from increased production costs to artist popularity to 24/7 online ticket scalping, which shows that the public is willing to pay much more than the main ticket price.
“It accuses Live Nation and Ticketmaster of charging high service fees, but ignores that Ticketmaster retains only a fraction of those fees. In fact, primary ticketing is one of the cheapest digital offerings in the economy.
You can read Live Nation’s full response here.
According to the indictment, Live Nation-Ticketmaster “unlawfully maintained monopolies in multiple concert promotions and major ticketing markets and engaged in other exclusionary conduct affecting live concert venues, including arenas and amphitheaters.”
The indictment further alleges that Live Nation-Ticketmaster’s alleged anti-competitive conduct “created additional obstacles for competitors to compete.”
“We allege that Live Nation relied on illegal, anti-competitive conduct to exert monopolistic control over the U.S. live events industry to the detriment of fans, artists, small promoters and venue operators.”
Attorney General Merrick B. Garland.
“We allege that Live Nation relied on illegal, anticompetitive conduct to exert monopolistic control over the U.S. live events industry to the detriment of fans, artists, small promoters and venue operators,” Attorney General Merrick B. Garland) said.
“The result is that fans pay more, artists have fewer concert opportunities, smaller promoters are squeezed out, and venues have fewer real ticketing options. It’s time to disband Live Nation-Ticketmaster.
“Today’s action is a step forward in making this era of live music more accessible to fans, 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 Department of Justice to combat corporate misconduct.
“Our focus on combating corporate wrongdoing includes anti-competitive conduct, which is harmful to consumers, workers and businesses of all types. Today’s complaint alleges that Live Nation-Ticketmaster engaged in anti-competitive conduct to solidify its dominance in the live concert market status and act as gatekeepers to the entire industry.
“Today’s action is a step forward in making this era of live music more accessible to fans, artists and the industry that supports them.”
In Live Nation’s response Thursday, the concert giant said, “The Department of Justice’s lawsuit does not address the concerns fans have regarding ticket prices, service fees and access to popular shows.”
It continued: “In the short term, calling Ticketmaster a monopoly may be a PR win for the Department of Justice, but it will fail in court because it ignores the basic economics of live entertainment, such as the way most service fees go to the fact that venues have been lost and competition has gradually waned
“Ticketmaster’s market share and margins. Our growth comes from helping artists tour the world, create lasting memories for millions of fans, and support local economies across the country by sustaining quality jobs.”
“We will defend against these baseless accusations, use this opportunity to shine a light on the industry, and continue to push for reforms that truly protect consumers and artists.”global music business
