THE US Justice Department is gearing up to sue Live Nation, TicketMaster’s parent company, for breaking antitrust laws.
While many Americans look forward to packing their summers with festivals and music tours, some can’t swallow the price of tickets.
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As soon as next month, the Justice Department plans to file a lawsuit accusing America’s largest ticket promoter of monopolizing the industry, according to a Wall Street Journal exclusive.
This could spark severe ramifications and limit the anticompetitive practices that force concert-goers to deplete their wallets for tickets.
HOW IT STARTED
The Justice Department began its investigation in 2022 to assess Live Nation’s power and impact on ticket sales and event promotions.
It picked up steam in November of that year after the Ticketmaster website crashed from a Taylor Swift The Era’s Tour presale.
Live Nation merged with Ticketmaster in 2010.
The company handles everything from ticket services to venue ownership, artist management, and concert promotions.
Following the pandemic, a rejuvenation of live events made Live Nation and Ticketmaster a concert conglomerate.
It holds over 80% of primary ticket sales for the biggest events in the US entertainment market, according to the Wall Street Journal.
It also has exclusive contracts with major stadiums and arenas.
MONOPOLY MADNESS
Dan Wall, Live Nation’s head of corporate affairs, posted a written statement on the company’s website in March 2024, stating it wasn’t a monopoly.
He claimed Ticketmaster wasn’t responsible for high fares and pointed to service charges he said the business couldn’t control.
Wall said the service charges were determined by concert venues instead of Ticketmaster.
“Primary ticketing service charges are a product of the hundreds of contracts that exist between venues and their exclusive ticketing providers,” Wall wrote.
A Ticketmaster spokeswoman also told the Wall Street Journal Ticketmaster has “more competition today than it has ever had.”
She cited contract terms with concert venues as the main reason for this.
The Justice Department lawsuit could potentially sever the Live Nation and Ticketmaster merger from 2010.
The merger terms were supposed to dissolve in 2020, but antitrust enforcers extended the deal through 2025.
Live Nation was also accused of pressuring venues and concert spaces to use its Ticketmaster subsidiary.
Ticketmaster did not immediately respond to The U.S. Sun’s request for comment.
The Wall Street Journal and The U.S. Sun are both owned by News Corp.
MORE LAWSUITS
In other lawsuit news, a data breach settlement resulted in Five Guys agreeing to pay $700,000.
The fast food joint was accused of failing to protect employee information from a data breach in 2022.
Around 38,000 workers were impacted, and eligible class members can claim $400 payments for reimbursement.
The U.S. Sun covers stories on concert ticket scams to watch out for.
Also, some Americans can qualify for a “no strings attached” $500 monthly payment.