The U.S. government filed a sweeping antitrust lawsuit Thursday against Live Nation Entertainment, the parent company of Ticketmaster, seeking to break up the conglomerate over allegations that it has amassed and abused unrivaled power in the ticketing and concert industries.
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The landmark case — joined by 30 state and district attorneys general — could dramatically reshape an ecosystem that has long sparked outrage from artists and fans alike, whose frustrations erupted in 2022 when high fees and site outages disrupted early sales for Taylor Swift’s “Eras” tour.
Live Nation is an entertainment titan: It is a concert promoter, artist manager, venue owner and ticket seller and reseller, constituting a sprawling empire that its executives publicly herald as the “largest live entertainment company in the world.” Last year alone, Live Nation produced more than 50,000 concerts and other musical events, and it sold more than 620 million tickets globally, the company boasted to investors in April.
But the U.S. government contends that the company’s vast power and reach have also afforded it unfair advantages over competitors, allowing Live Nation to evolve into an illegal and harmful “monopolist” — with the power to box out rivals, reduce consumer choices and raise ticket prices.
“We allege that 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,” Attorney General Merrick Garland said in a statement, later adding: “It is time to break up Live Nation.”
State and federal officials allege that Live Nation threatens to retaliate against performance venues unless they agree to use the company’s Ticketmaster service. Otherwise, these venue operators risk losing access to popular performances and tours — an unfavorable ultimatum, according to the government, that has allowed Ticketmaster to lock up more than 70 percent of sales at major concert venues.
To further entrench its dominance, Live Nation also targets artists: Performers at times must use Live Nation’s tour promotional services, or they cannot perform at company-operated venues, the complaint alleges. Live Nation owns or controls 265 concert venues in North America, including 60 of the top 100 amphitheaters in the United States, according to the government’s estimates.
State and federal antitrust watchdogs contend these arrangements ultimately have restricted artists, arrested the growth of competing ticketing services and cost audience members, who are forced to pay high, mandatory ticketing fees. In response, they asked a federal judge in New York to order structural changes to Live Nation, which could effectively force the company to break up.
A long, arduous court battle is now likely to follow, one that will see the Justice Department argue for unwinding a merger that the agency itself approved more than a decade ago.
In a statement Thursday, Live Nation sharply rebutted the charges. Dan Wall, the company’s executive vice president for corporate and regulatory affairs, said the government “ignores everything that is actually responsible for higher ticket prices,” including higher production costs, artist popularity and ticket “scalping.”
“It’s also clear that we are another casualty of this administration’s decision to turn over antitrust enforcement to a populist urge that simply rejects how antitrust law works,” he added.
The lawsuit marks only the latest federal antitrust case initiated under President Biden, who came to office promising to crack down on corporate power and profiteering. Over the past three years, federal watchdogs have sued major technology companies including Apple, Amazon, Facebook and Google for allegedly anticompetitive practices, and they have blocked major mergers involving airlines, biotech firms and grocery chains.
“Maybe it took people by surprise, but the president said [the government] wanted to do something on this, and they have,” said Sen. Amy Klobuchar (D-Minn.), the top lawmaker on the chamber’s antitrust panel. She added that Washington never should have allowed Live Nation to acquire Ticketmaster in the first place.
“However you look at it,” she said, “that’s a monopoly.”
Get a curated selection of 10 of our best stories in your inbox every weekend.
The landmark case — joined by 30 state and district attorneys general — could dramatically reshape an ecosystem that has long sparked outrage from artists and fans alike, whose frustrations erupted in 2022 when high fees and site outages disrupted early sales for Taylor Swift’s “Eras” tour.
Live Nation is an entertainment titan: It is a concert promoter, artist manager, venue owner and ticket seller and reseller, constituting a sprawling empire that its executives publicly herald as the “largest live entertainment company in the world.” Last year alone, Live Nation produced more than 50,000 concerts and other musical events, and it sold more than 620 million tickets globally, the company boasted to investors in April.
But the U.S. government contends that the company’s vast power and reach have also afforded it unfair advantages over competitors, allowing Live Nation to evolve into an illegal and harmful “monopolist” — with the power to box out rivals, reduce consumer choices and raise ticket prices.
“We allege that 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,” Attorney General Merrick Garland said in a statement, later adding: “It is time to break up Live Nation.”
State and federal officials allege that Live Nation threatens to retaliate against performance venues unless they agree to use the company’s Ticketmaster service. Otherwise, these venue operators risk losing access to popular performances and tours — an unfavorable ultimatum, according to the government, that has allowed Ticketmaster to lock up more than 70 percent of sales at major concert venues.
To further entrench its dominance, Live Nation also targets artists: Performers at times must use Live Nation’s tour promotional services, or they cannot perform at company-operated venues, the complaint alleges. Live Nation owns or controls 265 concert venues in North America, including 60 of the top 100 amphitheaters in the United States, according to the government’s estimates.
State and federal antitrust watchdogs contend these arrangements ultimately have restricted artists, arrested the growth of competing ticketing services and cost audience members, who are forced to pay high, mandatory ticketing fees. In response, they asked a federal judge in New York to order structural changes to Live Nation, which could effectively force the company to break up.
A long, arduous court battle is now likely to follow, one that will see the Justice Department argue for unwinding a merger that the agency itself approved more than a decade ago.
In a statement Thursday, Live Nation sharply rebutted the charges. Dan Wall, the company’s executive vice president for corporate and regulatory affairs, said the government “ignores everything that is actually responsible for higher ticket prices,” including higher production costs, artist popularity and ticket “scalping.”
“It’s also clear that we are another casualty of this administration’s decision to turn over antitrust enforcement to a populist urge that simply rejects how antitrust law works,” he added.
The lawsuit marks only the latest federal antitrust case initiated under President Biden, who came to office promising to crack down on corporate power and profiteering. Over the past three years, federal watchdogs have sued major technology companies including Apple, Amazon, Facebook and Google for allegedly anticompetitive practices, and they have blocked major mergers involving airlines, biotech firms and grocery chains.
“Maybe it took people by surprise, but the president said [the government] wanted to do something on this, and they have,” said Sen. Amy Klobuchar (D-Minn.), the top lawmaker on the chamber’s antitrust panel. She added that Washington never should have allowed Live Nation to acquire Ticketmaster in the first place.
“However you look at it,” she said, “that’s a monopoly.”
