US sues to break up Ticketmaster and Live Nation in landmark monopoly case

In a landmark antitrust lawsuit, the US government and numerous states have sued Live Nation, the parent company of Ticketmaster, accusing it of using its dominant position to harm concertgoers. Filed in New York by the Justice Department and attorneys general from 30 states and districts, the suit seeks to dismantle the company, which is the largest ticketing platform and concert promoter in the US.

The lawsuit, which has been anticipated for some time, could significantly alter the live events market if successful. This action follows the 2022 incident where Ticketmaster’s system failures prevented millions from buying tickets for Taylor Swift’s “Eras” tour, highlighting the negative impacts of limited competition such as poor customer service, high fees, and ticket resale restrictions.

Live Nation dismissed the lawsuit’s claims as unfounded, stating that it would not address issues like ticket prices, service fees, and show access. The company argued that its net profit margin of 1.4% last year is far lower than other tech giants targeted by the DOJ, such as Apple and Google.

Attorney General Merrick Garland emphasized that the lawsuit is not about inconvenience but illegal conduct, citing the multitude of fees charged by Ticketmaster. Prosecutors argue that Live Nation aimed to monopolize the ticketing and live events industry by securing exclusive deals with major venues, forcing them to use Ticketmaster.

The lawsuit claims Live Nation directly manages over 400 artists, controls 60% of concert promotions at major venues, and handles ticketing for over 265 venues in North America, controlling around 80% of primary ticket sales for major concerts.

Musicians, including Taylor Swift and other artists like Robert Smith of The Cure and country singer Zach Bryan, have criticized Live Nation’s practices. Swift described the situation as “excruciating,” and Bryan released a live album titled “All My Homies Hate Ticketmaster.”

The lawsuit marks the first significant challenge to Live Nation’s power since its 2010 merger with Ticketmaster, which regulators initially allowed with certain conditions. Critics, including Senators Amy Klobuchar and Richard Blumenthal, have long argued that the merger was problematic and have proposed legislation to regulate the ticketing industry.

This lawsuit aligns with the Biden administration’s broader antitrust agenda, addressing the negative impacts of consolidation across various sectors. The call for a jury trial is notable, as recent antitrust cases have typically sought decisions from judges due to their complexity.

The states and districts joining the lawsuit include Arizona, Arkansas, California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and the District of Columbia.

New York Attorney General Letitia James stated that Live Nation and Ticketmaster have long abused their dominance, overcharging fans, pressuring venues, and limiting artists. She emphasized the need for a new era in the live events industry.