U.S. Justice Department to Sue Ticketmaster Over Alleged Monopolistic Practices

The U.S. Department of Justice is preparing to file a major antitrust lawsuit against Live Nation Entertainment, the parent company of Ticketmaster, as soon as next month. The lawsuit will focus on Ticketmaster's alleged monopolistic practices in the live concert ticketing market, where it currently controls more than 80% of the market share for major concerts.

The Justice Department's action comes amid growing concerns about Ticketmaster's power and the lack of competition in the live entertainment industry. Customers have faced high prices and fees as a result of Ticketmaster's dominance. The lawsuit is expected to allege that Ticketmaster used its market-leading position to harm competition for live events and undermine its competitors.

The legal battle has been closely watched by fans who hope for justice in the world of online ticket purchases. Ticketmaster has long been a target of criticism from concert-goers, musicians, and venues, particularly after the issues with the Taylor Swift 'Eras Tour' ticket sales in 2022. The company has faced accusations of excessive ticket fees, poor customer service, and bullying smaller competitors.

Why this matters: A successful challenge to Ticketmaster's alleged monopoly could pave the way for a more open and competitive ticketing landscape, potentially leading to lower ticket prices, enhanced access to events, and a more diverse range of options for fans.

The Justice Department previously greenlit Ticketmaster's merger with Live Nation in 2010 but has since extended a consent decree giving it more power to regulate the company's market dominance. The lawsuit is part of the Biden administration's broader anti-monopoly efforts, with the DOJ also suing Apple and Google in recent years.

Live Nation has defended its practices, saying it does not set ticket prices or determine the number of tickets available and that venues set service and ticketing fees. However, rivals have accused Live Nation of using its dominance to force venues to use Ticketmaster's services. Analysts expect the lawsuit to target Ticketmaster's business practices rather than seek a break-up of the company.

Key Takeaways

• DOJ to file antitrust lawsuit against Live Nation/Ticketmaster over alleged monopolistic practices.
• Lawsuit aims to address Ticketmaster's 80%+ market share and impact on ticket prices/access.
• Lawsuit part of Biden admin's broader anti-monopoly efforts, following suits against Apple and Google.
• Successful challenge could lead to more competition, lower prices, and diverse ticketing options.
• Live Nation defends its practices, but rivals accuse it of using dominance to force Ticketmaster use.