The US Justice Department (DOJ) is suing Live Nation, arguing the large live performance promoter and its subsidiary, Ticketmaster, have been “monopolising” the dwell occasions trade.
The antitrust lawsuit was launched on Thursday by the DOJ, 30 US states, and the District of Columbia, with US Attorney General Merrick Garland saying: “It is time to break up Live Nation.”
The leisure firm merged with Ticketmaster again in 2010. Through Ticketmaster, Live Nation now controls roughly 80% or extra of huge venues’ main ticketing for concert events, the go well with says.
A Live Nation spokesperson stated the corporate would defend itself “against these baseless allegations” and stated the DOJ would lose in courtroom as a result of the case “ignores the basic economics of live entertainment”.
Ticketmaster, which overwhelmingly dominates the ticketing trade, has for years left followers and artists annoyed by hidden charges, rising prices, and restricted ticket availability as a consequence of presales.
Its dominance within the trade got here underneath scrutiny by US politicians in 2022, when Ticketmaster was pressured to cancel its common sale of tickets to Taylor Swift’s much-anticipated Eras tour as a consequence of “extraordinarily high demands”.
At the time, the famous person criticised Ticketmaster on social media, saying it was “excruciating for me to just watch mistakes happen with no recourse” after Swift’s followers reported lengthy wait instances and web site outages through the presales.
The star stated 2.4 million followers had been in a position to buy tickets, which was “truly amazing… but it really p***** me off that a lot of them feel like they went through several bear attacks to get them”.
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Thursday’s authorized motion underscores the aggressive strategy President Joe Biden’s antitrust enforcers have adopted as they search to create extra competitors in a variety of industries, from “big tech”, to healthcare, and groceries.
In March, the Justice Department filed a lawsuit in opposition to Apple alleging that the tech big has monopoly energy within the smartphone market.
“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,” Mr Garland stated.
He added that, in consequence, followers pay extra in charges, artists have fewer alternatives to carry out, and smaller promoters get squeezed out.
The lawsuit says Live Nation immediately manages greater than 400 musical artists and controls round 60% of live performance promotions at main venues.
It additionally owns or controls greater than 265 live performance venues in North America.
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In 2010, the Justice Department permitted Ticketmaster’s controversial merger with Live Nation, with circumstances meant
to cease the mixed firm from harming competitors.
In 2020, a courtroom prolonged many of the DOJ’s oversight of the merger to 2025 as a result of, the division stated, Ticketmaster
retaliated in opposition to stadiums and arenas that opted to make use of different ticketing corporations.
Live Nation has stated prior to now that it was assured its enterprise practices have been authorized, and that the probe had been prompted by complaints from rivals, together with re-sellers.
A spokesperson for the corporate stated on Thursday that the lawsuit “won’t solve the issues fans care about relating to ticket prices, service fees, and access to in-demand shows”.
Live Nation added that “calling Ticketmaster a monopoly may be a PR win for the DOJ in the short term, but it will lose in court because it ignores the basic economics of live entertainment” – stating that almost all service charges go to venues.
Content Source: information.sky.com