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4 months ago
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The Justice Department is expected to file a lawsuit against Live Nation–Ticketmaster today, claiming that the live events and ticketing company has illegally stifled competition.
Multiple media outlets reported on Wednesday evening that the DOJ, along with several states, will see remedies including that the company should be split up.
The lawsuit — rumored for weeks — would be the latest action taken by the Biden administration to rein in corporate power. The DOJ sued Apple in March, claming that the company had a monopoly over the smartphone market.
Live Nation and Ticketmaster have long been in the crosshairs of the DOJ.
Live Nation is under a consent decree from its 2010 merger with Ticketmaster, put in place as part of a settlement agreement with the Justice Department.
The consent decree was extended in 2019 for an additional 5 1/2 years after the DOJ concluded that Live Nation violated restrictions placed on its merger, which combined ticket, promotion, concert and management businesses. Among other things, the conditions prohibit Live Nation threatening to withhold concerts from a venue if it chooses another ticketing firm to handle sales.
Last year, the company faced hours of criticism and brutal attacks from lawmakers at a Senate hearing on practices in the ticketing industry. That followed an incident in which Ticketmaster’s website crashed amid an overload of demand for Taylor Swift concert tickets. Joe Berchtold, president and CFO, faced a grilling by lawmakers of both parties at the hearing. But Berchtold said that the artist sets the price of the ticket and, in most cases, the venue controls the fee.
Sen. Amy Klobuchar (D-MN), who chairs a Senate Judiciary subcommittee on antitrust issues, said in a statement, “If the reports are correct, the Justice Department is doing the right thing by bringing this suit against Live Nation. This is about ensuring fair treatment for fans everywhere and reinvigorating competition in ticketing markets.”
