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UPDATE: The Justice Department sued Live Nation–Ticketmaster today, claiming that the ticketing and concert events giant is stifling competition and driving up prices for consumers.
The lawsuit was filed in U.S. District Court in Manhattan along with dozens of state attorneys general, and it seeks a break up of the company, per the AP.
In a statement, Attorney General Merrick Garland said, per the AP, “We allege that Live Nation relies on unlawful, anticompetitive conduct to exercise its monopolistic control over the live events industry in the United States 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, and venues have fewer real choices for ticketing services. It is time to break up Live Nation-Ticketmaster.”
Garland was to announce the lawsuit at a press conference this morning.
PREVIOUSLY: 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.”
Dan Wall, executive vice president for corporate and regulatory affairs at the company, wrote in March that the “real explanations for high ticket prices are well-understood and have very little to do with Live Nation or Ticketmaster. They begin with the economic conditions that explain most pricing: supply and demand.” His essay addressed ongoing attacks on the company on Capitol Hill, suggesting that lawmakers advanced the idea that “alleged ‘monopolies’ are responsible for high ticket prices.”
“Rhetorically, that’s understandable, because if you want to rile up fans against Live Nation and Ticketmaster, there is no better way than to blame them for something you know fans dislike,” he wrote.
Bloomberg News first reported on the plans for the lawsuit.
