The Justice Department on Thursday sued Live Nation, accusing the owners of Ticketmaster of maintaining an illegal monopoly on live entertainment and demanding that the company be broken up.
The lawsuit, joined by 29 states and the District of Columbia, accuses the company of stifling competition by locking venues into exclusivity contracts, pressuring artists to use its services and retaliating against rivals that challenge its dominance.
The landmark lawsuit, filed in federal court in New York, comes in the wake of a Department of Justice investigation into Live Nation that reportedly gained steam in late 2022 after a botched ticket sales spree for Taylor Swift’s “Eras” tour left fans waiting in online queues for hours and complaints about exorbitant fees.
“It’s time to break up Live Nation,” U.S. Attorney General Merrick Garland said, saying the company has a stranglehold on the live events industry and that both consumers and musicians are paying the price.
“The result is fans paying more, artists getting fewer concert opportunities, smaller promoters being squeezed out and venues having fewer ticketing options,” he added.
“Swifties,” the nickname for Taylor Swift’s fans, and other concert-goers celebrated the Justice Department’s action on social media.
“The US Government is suing Ticketmaster for ticket price gouging. It’s time someone did something!” said one fan. I have written About X.
Another user I posted a screenshotI bought two tickets to a Justin Timberlake concert, but after fees, taxes and facility charges, the price went from $175 each to $462.59.
- Face value per ticket: $1,396.50
- Service Fee: $251.35
- Order processing fee: $5.00
- Total: $1,652.85
Live Nation responded by saying the lawsuit could be a “short-term PR win for the Department of Justice,” but that it expected to prevail in court, arguing that artists set ticket prices and that the majority of service fees are paid to venues.
“This lawsuit does nothing to address the issues that fans care about, including ticket prices, service fees and access to popular performances,” the company said in a statement. “The live events market is more competitive than ever.”
With the approval of the Obama administration, Live Nation and Ticketmaster merged in 2010, creating a conglomerate that directly manages more than 400 artists and controls approximately 60 percent of concert promotion at major venues.
According to the Justice Department’s complaint, the company owns and operates more than 265 entertainment venues in North America, including more than 60 of the top 100 amphitheaters.
The lawsuit adds that Live Nation, through Ticketmaster, controls approximately 80% or more of the primary ticket sales for concerts at major concert venues.
“Taken individually and collectively, Live Nation’s and Ticketmaster’s conduct allows them to exploit conflicts of interest and further entrench their dominant positions throughout the live music industry as promoters, ticket sellers, venue owners and artist managers,” the complaint states.
The lawsuit, filed in the U.S. District Court for the Southern District of New York, argues that Live Nation and Ticketmaster’s “vast reach” has allowed the companies to “exist at the heart and periphery of nearly every aspect of the live music ecosystem.”
“The Department of Justice is doing the right thing,” Democratic Senator Amy Klobuchar posted on X. “It’s long past time to break up Live Nation/Ticketmaster. Hidden fees, poor service, and choking off competition are all bad for fans. The Senate Judiciary Committee hearing is set, and it needs to happen now.”
In response to the news, Sen. Klobacher said in an interview on MSNBC on Thursday that Congress needs to do more to “put fans first,” including by increasing ticket sales and preventing bots from bulk-buying tickets. “There are just no rules of the road here.”
Live Nation has previously said it believes its business practices are lawful and that it launched the investigation after receiving complaints from rivals, including resellers.
1 fan I posted a screenshot How two tickets to musician Noah Kahan’s concert on May 31 at the Ruoff Music Center in Noblesville, Indiana, ballooned to $894.20 after a $153.20 fee was added.
“I am happy to testify against Ticketmaster because I just paid a $20 fee for a $60 ticket.” Another customer wrote:
“Ticketmaster and Live Nation’s monopoly and 30%-50% commission per ticket has angered a lot of people. Greed is what got them here,” another user added.
