Live Nation, the company behind Ticketmaster that controls 70% of all ticket sales at large venues, has been under public ire for several years now for its anti competitive behavior and role in increasing ticket prices for consumers.
In response, the Justice Department and 29 state attorney generals have filed a lawsuit against Live Nation, asking the courts to break up what they consider an illegal monopoly. They accuse Live Nation of forcing venues into exclusive contracts, pressuring artists to use Live Nation’s services, and threatening rivals. According to the lawsuit, this has severely hampered innovation and competition while also raising prices for consumers.
Another aspect of the lawsuit’s claim that Live Nation is a monopoly is how expansive Live Nation is. Live Nation manages venues, concert promotion, ticketing, sponsors, and artists, leading to the Justice Department saying “Live Nation has its tentacles in virtually every aspect of the live entertainment industry”.
Furthermore, the lawsuit points to the many fees Ticketmaster has, also known as the “Ticketmaster Tax”, as an example of higher prices for consumers. In a similarly hostile manner, the lawsuit says Live Nation has threatened venues unless they used Ticketmaster.
Live Nation has responded half-heartedly, saying that things like higher demand, higher production costs, and scalping were the causes for higher prices. It also disputed that it had a monopoly on the grounds that its market share has been declining for the last decade.
