The Justice Department, in conjunction with 30 state and district attorneys general, has filed a civil antitrust lawsuit against Live Nation Entertainment Inc. and its subsidiary, Ticketmaster LLC (collectively known as Live Nation-Ticketmaster). The suit alleges monopolization and other unlawful practices that hinder competition in the live entertainment industry. The legal action seeks structural relief to restore market competition, provide better choices at lower prices for fans, and create opportunities for musicians and performance artists.
Filed today in the U.S. District Court for the Southern District of New York, the complaint accuses Live Nation-Ticketmaster of unlawfully exercising monopoly power in violation of Section 2 of the Sherman Act. According to the allegations, this conduct deprives U.S. music fans of ticketing innovation while forcing them to use outdated technology and pay higher prices compared to international markets. Additionally, it is claimed that Live Nation-Ticketmaster's dominance adversely affects performers, venues, and independent promoters by imposing barriers that limit market entry and expansion for rivals.
"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," said Attorney General Merrick B. Garland. "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."
Deputy Attorney General Lisa Monaco added: "Today’s announcement reflects the latest efforts by the Justice Department to combat corporate misconduct. Our fight against corporate wrongdoing includes an intense focus on anticompetitive conduct — which disadvantages consumers, workers, and businesses of all kinds."
Acting Associate Attorney General Benjamin C. Mizer emphasized commitment: "As our complaint alleges, Live Nation-Ticketmaster monopolizes the markets for concerts and other live events at the expense of fans, venues, and artists across the country."
Assistant Attorney General Jonathan Kanter from the Antitrust Division stated: "The live music industry in America is broken because Live Nation-Ticketmaster has an illegal monopoly."
The complaint outlines several specific practices used by Live Nation-Ticketmaster:
- **Relationship with Oak View Group**: Exploiting a partnership with Oak View Group to avoid competition.
- **Retaliation Against Potential Entrants**: Threatening financial retaliation against firms attempting market entry.
- **Threats Against Venues Working with Rivals**: Using concert promotion power to discourage venues from working with competitors.
- **Exclusionary Contracts**: Locking concert venues into long-term exclusive contracts.
- **Blocking Multiple Ticketers**: Preventing new promotions or ticketing competitors from emerging.
- **Restricting Artists' Access**: Controlling key venues through acquisitions or agreements.
- **Acquiring Competitors**: Strategically acquiring smaller regional promoters identified as threats.
Live Nation Entertainment Inc., headquartered in Beverly Hills, California describes itself as “the largest live entertainment company in the world.” It owns or controls over 265 concert venues in North America generating over $22 billion globally annually from various business segments including concerts promotion/venue management/music festival production), ticketing (Ticketmaster business), sponsorships/advertising.
Ticketmaster LLC operates as a wholly owned subsidiary selling primary/resale concert tickets being multiple times larger than its closest competitor within US markets.