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Accused of violating antitrust laws, Live Nation Entertainment faces a fight that could reshape the multibillion-dollar live music industry.The Justice Department on Thursday sued Live Nation Entertainment, the concert giant that owns Ticketmaster, asking a court to break up the company over claims it illegally maintained a monopoly in the live entertainment industry.In the lawsuit, which is joined by 29 states and the District of Columbia, the government accuses Live Nation of dominating the industry by locking venues into exclusive ticketing contracts, pressuring artists to use its services and threatening its rivals with financial retribution.Those tactics, the government argues, have resulted in higher ticket prices for consumers and have stifled innovation and competition throughout the industry.“It is time to break up Live Nation-Ticketmaster,” Merrick Garland, the attorney general, said in a statement announcing the suit, which was filed in the U.S. District Court for the Southern District of New York. The suit asks the court to order “the divestiture of, at minimum, Ticketmaster,” and to prevent Live Nation from engaging in anticompetitive practices.The lawsuit is a direct challenge to the business of Live Nation, a colossus of the entertainment industry and a force in the lives of musicians and fans alike. The case, filed 14 years after the government approved Live Nation’s merger with Ticketmaster, has the potential to transform the multibillion-dollar concert industry.Live Nation’s scale and reach far exceed those of any competitor, encompassing concert promotion, ticketing, artist management and the operation of hundreds of venues and festivals around the world.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More
Case 1:24-cv-03973 Document 1 Filed 05/23/24 Page 32 of 128
64.
Ticketmaster restructured how ticketing companies get paid for their services.
Venues used to pay ticketing service companies to ticket events. But in the early 1980s,
Ticketmaster started passing more ticketing costs onto consumers (who effectively have no
choice in selecting the ticketer) in the form of fees, and then sharing some of the additional
revenue with venues. Second, Ticketmaster began paying venues large upfront advances in
exchange for the exclusive, multi-year right to sell and distribute their tickets.
65. On February 10, 2009, Live Nation (then known as Live Nation, Inc.) and
Ticketmaster (then known as Ticketmaster Entertainment, Inc.), agreed to merge. At the time,
Live Nation was an emerging direct competitor to Ticketmaster in primary ticketing services:
after spending nearly two years evaluating, licensing, and developing its own ticketing platform,
Live Nation had rapidly become America’s second-largest primary ticketer at major concert
venues.² Alleging the merger would likely substantially lessen competition in the provision and
sale of primary ticketing services for major concert venues, the United States and nineteen states³
filed a case challenging the merger under Section 7 of the Clayton Act, 15 U.S.C. § 18.4 The
parties agreed to a consent decree, entered as a final judgment in the Section 7 case on July 30,
2010, allowing the merger to proceed subject to certain conditions.
2 Amended Complaint at 5 ¶ 3, 13–14 ¶¶ 34–37, United States et al. v. Ticketmaster Ent., Inc., et al., No. 1:10-cv-
00139, Dkt. No. (D.D.C. Jan. 29, 2010), ECF No. 5.
3 Specifically, the States of Arizona, Arkansas, California, Florida, Illinois, Iowa, Louisiana, Nebraska, Nevada,
Ohio, Oregon, Rhode Island, Tennessee, Texas, Wisconsin, New Jersey, and Washington and the Commonwealths
of Massachusetts and Pennsylvania. Id. at 1.
4 Id. at 1746.
5 Final Judgment, United States et al. v. Ticketmaster Ent., Inc., et al., No. 1:10-cv-00139 (D.D.C. July 30, 2010),
ECF No. 15.
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Live Nation Entertainment, the concert giant that owns Ticketmaster, faces a fight that could reshape the multibillion-dollar live music industry.The Justice Department and a group of states plan to sue Live Nation Entertainment, the concert giant that owns Ticketmaster, as soon as Thursday, accusing it of illegally maintaining a monopoly in the live entertainment industry, said three people familiar with the matter.The government plans to argue in a lawsuit that Live Nation shored up its power through Ticketmaster’s exclusive ticketing contracts with concert venues, as well as the company’s dominance over concert tours and other businesses like venue management, said two of the people, who declined to be named because the lawsuit was still private. That helped the company maintain a monopoly, raising prices and fees for consumers, limiting innovation in the ticket industry and hurting competition, the people said.The government will argue that tours promoted by the company were more likely to play venues where Ticketmaster was the exclusive ticket service, one of the people said, and that Live Nation’s artists played venues that it owns.Live Nation is a colossus of the concert world and a force in the lives of musicians and fans alike. Its scale and reach far exceed those of any competitor, encompassing concert promotion, ticketing, artist management and the operation of hundreds of venues and festivals around the world.The Ticketmaster division alone sells 600 million tickets a year to events around the world. According to some estimates, it handles ticketing for 70 percent to 80 percent of major concert venues in the United States.Lawmakers, fans and competitors have accused the company of engaging in practices that harm rivals and drive up ticket prices and fees. At a congressional hearing early last year, prompted by a Taylor Swift tour presale on Ticketmaster that left millions of people unable to buy tickets, senators from both parties called Live Nation a monopoly.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More
