Lawsuit Accusing Live Nation Entertainment of Anticompetitive Behavior Grows as More States Join
The Justice Department’s ongoing lawsuit against Live Nation Entertainment and its subsidiary, Ticketmaster, has gained traction as ten more states joined the case. With a total of 41 plaintiffs, including the DOJ, District of Columbia, and 39 states, the lawsuit alleges that Live Nation and Ticketmaster engaged in illegal and anticompetitive behavior in their concert agreements.
Attorney General Merrick Garland, in the initial complaint filed in May, accused Live Nation of driving up costs for fans and artists. He stated that Live Nation relies on unlawful tactics to maintain monopolistic control over the live events industry in the United States, which negatively impacts fans, artists, smaller promoters, and venue operators. Garland emphasized the need to break up Live Nation-Ticketmaster.
Live Nation has dismissed the DOJ’s claims as “absurd” and has requested the dismissal of the lawsuit. The company argues that their conduct is not illegal according to case law. They also criticize the state-related allegations, calling them “threadbare” and involving time-barred claims. A Live Nation spokesperson expressed the company’s belief that the lawsuit does not address the concerns fans have about ticket prices, service fees, and access to popular shows.
According to the amended complaint by the DOJ, Live Nation established exclusionary contracts with venues, restricted artists’ access to venues, and eliminated competitive threats. The company’s actions violated federal law and various state antitrust laws. The amended complaint lists Texas, Virginia, Tennessee, South Carolina, Rhode Island, Utah, and others as the states where Live Nation’s actions violated state antitrust laws.
Joining the lawsuit on August 19 were the attorneys general of Vermont, Louisiana, Mississippi, Indiana, Kansas, Iowa, South Dakota, Nebraska, New Mexico, and Utah. With this growing number of states involved, the DOJ is seeking a jury trial and remedies to halt anticompetitive conduct. The plaintiffs are specifically requesting civil penalties or civil forfeiture for the states involved, as well as the divestiture of Ticketmaster from Live Nation Entertainment.
Live Nation Entertainment, formed in 2010 through a merger between Ticketmaster Entertainment, Inc., and Live Nation, Inc., generates significant revenue. The DOJ’s latest complaint reveals that the company’s global revenue reaches $22 billion per year, with $18.8 billion in concert revenue in 2023. Live Nation has significant control over 373 venues globally and more than 265 in North America. This includes ownership or exclusive booking rights for over 60 of the top 100 amphitheaters in the United States.
The lawsuit against Live Nation and Ticketmaster stems from a class action lawsuit filed by Taylor Swift fans last year. The fans were unable to obtain tickets to Swift’s concert due to Ticketmaster’s website crashing. The DOJ launched an investigation into the ticket-seller’s practices following the class action lawsuit. Although the fans’ lawsuit was dropped in August 2023, the DOJ continued its investigation, leading to the current antitrust lawsuit.
The DOJ’s pursuit of antitrust lawsuits extends beyond Live Nation and Ticketmaster. The department recently secured a victory against Google for violating antitrust laws in its search and search advertising market practices. Furthermore, the DOJ is pursuing another lawsuit against Apple with the support of 15 states and the District of Columbia.
In conclusion, the ongoing lawsuit against Live Nation and Ticketmaster has gained momentum with the addition of ten more states. The DOJ’s complaint alleges anticompetitive behavior by the companies, impacting fans, artists, promoters, and venue operators. Live Nation denies the claims and seeks the dismissal of the lawsuit. The DOJ is pushing for remedies to halt anticompetitive conduct, including civil penalties and divestiture. The lawsuit follows a class action lawsuit filed by Taylor Swift fans and is part of the DOJ’s broader efforts to address antitrust violations in various industries.
