DEPARTMENT OF JUSTICE (DOJ) – LAWSUIT FILED AGAINST LIVE NATION-TICKETMASTER FOR MONOPOLIZING THE LIVE CONCERT INDUSTRY

24/06/2024

The U.S. Department of Justice has filed an antitrust lawsuit against Live Nation Entertainment Inc. and its wholly-owned subsidiary Ticketmaster LLC (Live Nation-Ticketmaster) for monopolizing the live entertainment sector and engaging in other illegal behaviors that hinder competition in the market. The lawsuit, which also includes a demand for structural relief, aims to restore competition in the live concert industry, provide fans with better options at lower prices, and open venue doors to working musicians and other performing artists.

The complaint filed in federal court alleges that Live Nation-Ticketmaster violated Section 2 of the Sherman Act by unlawfully exercising its monopoly power. Additionally, Live Nation-Ticketmaster is accused of leveraging its power over artists, venues, and independent promoters in ways that harm competition and impede the entry and expansion of competitors in the market.

According to the complaint, Live Nation-Ticketmaster has maintained its monopoly in various concert promotions and primary ticketing markets unlawfully and engaged in other exclusionary practices affecting live concert venues such as arenas and amphitheaters. The complaint also alleges that Live Nation-Ticketmaster's exclusionary practices reinforce and protect what the company refers to as its "wheel" – a self-reinforcing cycle wherein Live Nation-Ticketmaster profits from concertgoers and sponsorships, uses this revenue to tie artists into exclusive promotion deals, and then leverages its strong portfolio of live content to secure long-term exclusive ticketing agreements with venues.

The DOJ argues that Live Nation-Ticketmaster's anticompetitive behaviors further hinder competitors from competing on merit. The DOJ alleges that Live Nation-Ticketmaster has employed various tactics to eliminate competition and monopolize markets.

• Relationship with Oak View Group: Live Nation-Ticketmaster has exploited its longstanding relationship with Oak View Group, a potential competitor that has become a partner to Live Nation from a potential rival in the Live Nation. In recent years, Oak View Group has refrained from competing with Live Nation for artist talent and directed venues to sign exclusive deals with Ticketmaster. For example, Live Nation has reprimanded Oak View Group for attempting to compete several times. At one-point, Live Nation asked, "Who would be so stupid as to play into the arms of a talent agency?" and in another instance, said, "Let's make sure the talent agency doesn't start using us against each other."
• Retaliation Against Potential Entrants: Live Nation-Ticketmaster has threatened financial retaliation to prevent a company's subsidiary from establishing itself in the U.S. concert promotion market.
• Threats and Retaliation Against Venues Working with Competitors: Live Nation-Ticketmaster's power in concert promotion means that every live concert venue knows that selecting a different promoter or ticketing entity carries the risk of negative reactions from Live Nation-Ticketmaster, potentially resulting in lost concerts, revenues, and fans.
• Exclusionary Contracts Hindering Competition: Live Nation-Ticketmaster locks in concert venues with long-term exclusive contracts, preventing venues from considering rival ticketing firms or choosing better or more cost-effective ticketing technology. These contracts reduce the competitive pressure on Live Nation-Ticketmaster to improve its own ticketing technology and customer service.
• Preventing Venues from Using Multiple Ticketing Firms: Live Nation-Ticketmaster's behavior and exclusive contracts prevent new and different promotional and ticketing rivals and business models from emerging. It prevents venues from using multiple ticketing entities to compete by offering fans the best mix of price, fee, quality, and innovation.
• Restricting Artists' Access to Venues: Live Nation-Ticketmaster increasingly takes control of key venues, including amphitheaters. Live Nation-Ticketmaster requires artists to agree to use these venues, conditioned on these artists also using promotional services.
• Acquiring Competitors and Competitive Threats: Live Nation-Ticketmaster has strategically acquired a range of small and regional promoters that it internally identifies as threats. This consolidation weakens competition and affects artists' compensation.

According to the complaint, Live Nation-Ticketmaster has unlawfully maintained its monopoly in various concert promotions and primary ticketing markets and engaged in other exclusionary practices affecting live concert venues such as arenas and amphitheaters.

(DOJ – 23.05.2024)

 

 

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