The parent company of Ticketmaster, Live Nation, is reportedly facing an antitrust lawsuit from the US Justice Department. The lawsuit, which is expected to be filed next month, follows complaints about Live Nation’s alleged monopoly over the ticketing industry, “exorbitant” fees and high ticket prices. Live Nation and Ticketmaster merged in 2010 and now reportedly control over 80% of the primary ticket market in the US. The company is also said to have “stifled” competition by working with the largest venues in the US and implementing exclusive ticketing contracts. The lawsuit is expected to allege that Live Nation has “leveraged its dominance” in the market.
The case comes in the wake of criticism of Live Nation’s handling of Taylor Swift’s 2022 Era’s Tour, when the Ticketmaster website crashed during pre-sale. The investigation reportedly gathered momentum after the incident. The antitrust lawsuit could call into question a 2010 settlement arrangement struck as part of the merger of Live Nation and Ticketmaster, which is said to expire after 10 years. Antitrust enforcers are claimed to have extended the deal until 2025, after finding that Live Nation violated the 2010 pact by “bullying venues into using its Ticketmaster subsidiary.”
The suit could have significant implications for the way that Live Nation operates in the US. A New York Times report from late 2019 noted that music fans often face inflated ticket prices, hidden fees, and confusing purchasing processes. The report also stated that “Ticketmaster’s parent company, Live Nation, has faced accusations of antitrust violations, unfair business practices, and conflicts of interest”. Live Nation has disputed the claims made against it, with a spokesperson arguing that the company has “more competition today than it has ever had”. The antitrust lawsuit arrives as the live entertainment sector in the US begins to recover from the COVID-19 pandemic, which forced the closure of venues across the country.
Live Nation recently reported second-quarter results that showed a net loss of $431.9m. The report blamed lost ticket revenues due to pandemic-related cancellations and said that the company currently lists 84 shows, festivals and concerts scheduled from the end of August onwards, with 2.7 million tickets available for sale. This represents around 25% of bookings for the same period in 2019. However, some performances have already begun to be cancelled due to a surge in the Delta variant of COVID-19 in the US
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