Justice Department Is Getting Ready To File Antitrust Lawsuit Against Ticketmaster
The US Department of Justice is preparing to file an antitrust lawsuit against Live Nation (NYSE: LYV), the parent company of ticketing giant Ticketmaster, according to multiple reports. This would mark a significant escalation in the government’s scrutiny of the company’s dominant position in the live entertainment industry.
The Wall Street Journal and Bloomberg both reported that the DOJ is planning to file the lawsuit in the coming weeks, citing people familiar with the matter. The lawsuit would allege that Live Nation has leveraged its market power in a way that has undermined competition in ticketing for live events.
The planned lawsuit comes after years of criticism and accusations of anticompetitive practices against Live Nation and Ticketmaster. Lawmakers have raised concerns about the company’s dominance following high-profile ticketing meltdowns, such as the failure of Ticketmaster’s system during the presale for Taylor Swift’s “Eras Tour” in 2022.
Live Nation merged with Ticketmaster in 2010, a deal that was approved by the DOJ at the time following an antitrust investigation. However, the department later found that Live Nation had violated a settlement agreement by threatening venues that used other ticketing services.
In a blog post earlier this year, Live Nation’s head of corporate affairs, Dan Wall, pushed back on accusations that the company is a monopoly. He argued that ticket prices are set by artists and their teams, and that service fees are determined by venues, not Ticketmaster.
The planned lawsuit could unravel the 2010 settlement agreement and lead to major changes at the company.
Information for this story was found via Bloomberg, The Wall Street Journal, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
