In a significant move against corporate misconduct, the U.S. Justice Department, along with 30 state and district attorneys general, has filed a civil antitrust lawsuit against Live Nation Entertainment Inc. and its subsidiary, Ticketmaster LLC. The lawsuit alleges that the entertainment giant has unlawfully monopolized the live concert industry, leading to higher ticket prices, limited choices for fans, and fewer opportunities for artists.
The complaint, lodged in the U.S. District Court for the Southern District of New York, accuses Live Nation-Ticketmaster of violating Section 2 of the Sherman Act. The company's alleged anticompetitive conduct has reportedly resulted in outdated technology and inflated ticket prices for U.S. music fans, while also imposing barriers that limit the entry and expansion of its rivals.
Attorney General Merrick B. Garland stated, "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." He added, "It is time to break up Live Nation-Ticketmaster."
The lawsuit is the latest in a series of aggressive antitrust efforts by the Biden administration, which has brought similar enforcement efforts challenging companies like Apple, Google, and Amazon over what it alleges are clear anti-competitive practices that have served to harm American consumers.
The Justice Department's complaint details how Live Nation-Ticketmaster has allegedly maintained monopolies in several concert promotions and primary ticketing markets. It also accuses the company of engaging in exclusionary conduct affecting live concert venues, including arenas and amphitheaters.
Among the practices singled out by the DOJ are allegations that Live Nation exploited its relationship with the company Oak View Group, which the lawsuit says describes itself as a "hammer" for Live Nation and has avoided bidding against the company for exclusive agreements with artists and major venues.
The company, according to the Justice Department, also allegedly carried out a pattern of threatening potential competitors seeking to enter the concert promotions market and creating a climate where venue owners would fear entering into contracts with Live Nation-Ticketmaster's rivals.
Live Nation-Ticketmaster has not yet responded to the lawsuit. However, the company has previously defended its business practices, including during a contentious appearance before Congress early last year.
The White House has expressed support for the DOJ's lawsuit against Live Nation and Ticketmaster. White House press secretary Karine Jean-Pierre said in a statement, "As the President has said, the American people are tired of being played for suckers."
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