The DOJ’s antitrust case argues breaking up the company is necessary to protect competition of small promoters, artists and event venues|@TheJusticeDept|X
The Department of Justice (DOJ) and 30 other states sued Live Nation yesterday, alleging the entertainment promoter and Ticketmaster have reduced competition and increased prices for consumers by monopolizing ticket sales to concerts and live events in the US.
The lawsuit seeks to break up the country’s largest concert promoter and ticket seller, alleging that Live Nation used its power to retaliate against venues, artists and promoters that threatened its dominance.
The case claims the entertainment promoter forced venues to use its ticketing service and told artists they could perform at their venues if they used Live Nation’s services. It owns or operates roughly 370 venues or festival sites globally, manages over 400 artists and controls more than 70% of the ticketing and live events market in the country.
The situation saw Attorney General Merrick Garland comment, “It is time to break up Live Nation.”
The antitrust case argues breaking up the company is necessary to protect competition of small promoters, artists and event venues.
Ticketmaster parent Live Nation denies having a monopoly and argues that prices are set by artists and venues, not the company itself.
The DOJ seeks a jury trial, hoping to leverage public sentiment against Live Nation’s ticket pricing.
The Taylor Swift effect
Ticketmaster received backlash from Taylor Swift fans last year after it crashed during the Eras Tour pre-sale, making Swifties wait hours online and later cancel the ticket sales. The Swiftie debacle was followed by an announcement by the DOJ that it was investigating the company.
Thursday’s suit is the latest in the Biden administration’s crackdown on big businesses for antitrust-related violations.
In the past three years, several companies, including Apple, Meta, Amazon and Google, have been sued.