DOJ, Several States Bringing Lawsuit To Live Nation Entertainment Over Ticketmaster
Written by djfrosty on May 24, 2024
The Justice Department and several states are joining together to sue Live Nation Entertainment in connection to Ticketmaster, whose side accuses the company of owning a monopoly on live entertainment. Justice Department officials are accusing Ticketmaster of blocking out potential opportunities for other companies by striking exclusive ticket and venue deals that essentially gave them the lion’s share of the market.
The New York Times reports that based on the accounts of unnamed invidious close to the matter, the federal government, along with a grouping of states that were not announced in the outlet’s report. The position that will be taken when the matter goes to court is the accusation that Live Nation struck exclusive ticketing contracts with certain concert venues and served as the main ticket hub for concert tours.
Further, the government will claim that other business factors such as venue management according to insiders, aided Live Nation in becoming a monopoly by passing on high costs to consumers and causing damage to any competitors’ efforts to enter the field. Further, the DOJ will state within the lawsuit that tours that were promoted by the entertainment company were more likely to play shows where Ticketmaster had exclusive rights to ticket sales.
Ticketmaster reportedly sells about 600 million tickets annually according to global tallies. It is estimated that the company’s ticketing business is responsible for between 70 and 80 percent of major concert venues domestically.
In 2023, a congressional hearing was held that was sparked by a frenzied Taylor Swift tour presale event which millions of fans were unable to participate in. Both Republicans and Democrats in the U.S. Senate called the company a monopoly
The lawsuit will be filed in the Southern District of New York.
—
Photo: Getty