DOJ Expected To Sue Ticketmaster

The U.S. Department of Justice (DOJ) is gearing up to file an antitrust lawsuit against Live Nation, the world’s largest live entertainment organization and owner of Ticketmaster, according to Billboard. 

Here’s what you need to know about this legal dispute:

Investigation Background: The DOJ has been conducting a two-and-a-half-year investigation into Live Nation’s business practices. The focus of the lawsuit centers around Ticketmaster’s exclusive venue contracts for its ticketing services.

Exclusive Venue Contracts: Ticketmaster’s use of exclusive contracts with venues has drawn scrutiny. These contracts grant Ticketmaster a dominant position in the market, particularly in the top 100 highest-grossing theaters, arenas, and stadiums in North America. Senator Amy Klobuchar, who chairs the Senate’s antitrust subcommittee, has raised concerns about Ticketmaster’s 70-80% market share in these venues. She believes that exclusive contracts allow Ticketmaster to lock up market share.

Ticket Prices and Fees:  The DOJ is also expected to argue that Live Nation has abused its power in the concert business to drive up ticket prices over the last decade. Additional fees, which can add as much as 30% to ticket prices, have been a point of contention. While artists set their ticket prices, Ticketmaster contends that only a small percentage of the fees collected above face value goes to the ticketing company.

Merger and Monopoly: Interestingly, the lawsuit is related to “specific business practices at Live Nation” rather than the legality of the Live Nation/Ticketmaster merger. While ending the merger and splitting the company may not be on the table, the government could propose other penalties if it deems Live Nation’s practices monopolistic.

The DOJ’s lawsuit aims to address concerns about exclusive contracts, ticket prices, and market dominance within the live entertainment industry.