Department of Justice in the US to File Lawsuit, Potentially Disbanding Live Nation and Ticketmaster - Source Reveals
The United States Department of Justice plans to initiate an antitrust lawsuit against Live Nation Entertainment, the owner of music promoter Live Nation and ticket sales platform Ticketmaster, according to Bloomberg News. The lawsuit is set to be filed in the Southern District of New York this Thursday.
The case revolves around Live Nation's alleged monopoly on the live entertainment industry in the US, resulting in exorbitant fees charged by Ticketmaster.
In the lawsuit, the DOJ may demand that Live Nation and Ticketmaster cease any illegal activities, which is a common request, or ask the court to dissolve the two businesses, a less common but possible option.
The merger between Live Nation and Ticketmaster took place in 2010, despite concerns regarding potential monopolistic practices. The combined companies now command an estimated 70% of the ticketing and live event space market, with an even larger presence in Las Vegas, though specific city-by-city figures were unavailable.
Taylor Swift Incident Triggers Lawsuit
The proximate cause of the lawsuit was pop sensation Taylor Swift's "The Eras" tour, during which Ticketmaster canceled the public on-sale date in November 2022 due to a technical error that led to the early sale of all 2.4 million tickets during the presale.
This was the first time in Ticketmaster's 47-year history that a previously announced on-sale had been canceled due to unavailability of inventory.
Taylor Swift expressed frustration about the situation in an Instagram post, stating, "It's really difficult for me to trust an outside entity with these relationships and loyalties, and excruciating for me to just watch mistakes happen with no recourse. There are a multitude of reasons why people had such a hard time trying to get tickets, and I'm trying to figure out how this situation can be improved moving forward."
Following the fiasco, the DOJ commenced its investigation into Live Nation, while several US Senators criticized the company for its lack of transparency and inability to prevent bot purchases of tickets at a January 2023 hearing.
In December 2022, a fan sued Live Nation on behalf of thousands of other Taylor Swift fans, alleging fraud, price fixing, and antitrust violations, stating that Ticketmaster was a "monopoly" that "knowingly misled millions of fans."
By April 2023, the fan, Michelle Sterloff, had withdrawn her case. Although she never revealed her reasons, a news outlet revealed that both parties were exploring "ongoing settlement discussions" shortly before the dismissal.
Ticketmaster's Explanation
In a blog post earlier this year, Dan Wall, Live Nation's Head of Corporate Affairs, defended the company's policies, arguing that ticket prices are determined by artists and their representatives, while additional service charges are set by the venues themselves.
"Fans are often told that service charges are Ticketmaster's way of raising ticket prices," he wrote. "In actuality, Ticketmaster does not set service charges. Venues do, and most of the money generated from service charges goes to the venues."
The blog post also addressed fan concerns over ticket prices, declaring that Ticketmaster only charges a fee for its services, with artists and venues controlling price decisions. Wall added that the company had implemented various measures to improve accessibility and affordability, such as limiting the number of tickets most people could buy and offering discounts for fans over the age of 65 or with disabilities.
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Source: www.casino.org
