DOJ Files Lawsuit Against Ticketmaster-parent Live Nation Over Alleged Monopoly Practices

(RTTNews) - The Justice Department on Thursday said it has filed a lawsuit against Live Nation Entertainment Inc. (LYV), alleging that the parent company of Ticketmaster has monopolized the sale of concert tickets.

The Justice Department, along with 30 state and district attorneys general, filed a civil antitrust lawsuit against Live Nation and its wholly-owned subsidiary, Ticketmaster for monopolization and other unlawful conduct that thwarts competition in markets across the live entertainment industry.

The lawsuit, which includes a request for structural relief, seeks to restore competition in the live concert industry, provide better choices at lower prices for fans, and open venue doors for working musicians and other performance artists.

The complaint was filed in the U.S. District Court for the Southern District of New York. It alleges that Live Nation-Ticketmaster's dominance has deprived music fans in the United States of ticketing innovation and forced to use outdated technology while paying more for tickets than fans in other countries.

"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," said Attorney General Merrick B. Garland. "The result is that fans pay more in fees, artists have fewer opportunities to play concerts, smaller promoters get squeezed out, and venues have fewer real choices for ticketing services. It is time to break up Live Nation-Ticketmaster."

Live Nation directly manages more than 400 musical artists, controls some 60% of concert promotions at major venues and, through Ticketmaster, controls roughly 80% or more of major concert venues' ticketing.

"Today's announcement reflects the latest efforts by the Justice Department to combat corporate misconduct," said Deputy Attorney General Lisa Monaco. "Our fight against corporate wrongdoing includes an intense focus on anticompetitive conduct — which disadvantages consumers, workers, and businesses of all kinds."

In a statement, Live Nation said the Justice Department's allegations were "baseless" and that its actions would prove counterproductive.

"The DOJ's lawsuit won't solve the issues fans care about relating to ticket prices, service fees, and access to in-demand shows," it said. "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, such as the fact that the bulk of service fees go to venues, and that competition has steadily eroded Ticketmaster's market share and profit margin."

LYV is currently trading at $94.82, down $6.58 or 6.49%, on the NYSE.