US Government Moves to Split Live Nation-Ticketmaster in Monopoly Case
In a bold move, the US government is taking action to break up Live Nation-Ticketmaster, accusing the entertainment giant of holding an illegal monopoly in the live entertainment industry. Merrick Garland, the US attorney general, has declared that “it is time to break up Live Nation-Ticketmaster.” The company, formed through a $2.5 billion merger in 2010, encompasses Live Nation Entertainment, which not only sells tickets and promotes gigs but also owns and operates music venues and manages music artists.
According to Garland, the company’s business practices have resulted in fans paying exorbitant fees, artists having fewer opportunities to perform, smaller promoters being pushed out, and venues having limited options for ticketing services. This move comes in the wake of a highly criticized incident involving the sale of Taylor Swift’s Eras arena tour tickets in 2022. The public ticket sale was canceled after Ticketmaster’s website was overwhelmed with an unprecedented demand, which included attacks from bots posing as consumers. Millions of fans were left disappointed.
Critics have pointed to Ticketmaster’s convoluted ticketing process and skyrocketing prices as contributing factors to the company’s negative reputation. Over the past two decades, ticket prices have more than tripled across the industry. By 2022, Live Nation-Ticketmaster had gained control over 60% of concert promotion and 80 to 100% of the top 100 arenas in the USA.
Concerns over anticompetitive behavior led a group of US lawmakers, including Senator Amy Klobuchar of Minnesota, to call on Garland to take action against the company. Now, it seems that their call for investigation has resulted in a decisive move by the US government to address the issue head-on. The fate of Live Nation-Ticketmaster hangs in the balance as the legal battle unfolds.
The Eras Tour, a highly anticipated event, has been abruptly cancelled, leaving fans disappointed and frustrated. Ticketmaster, the popular ticketing platform, announced the cancellation on X, after their website was overwhelmed with traffic in 2022. This announcement comes amidst a lawsuit filed by the US Department of Justice against Live Nation, accusing the company of using its dominant position to stifle competition.
According to the lawsuit, Live Nation has engaged in anti-competitive practices such as entering into long-term exclusivity agreements with venues and acquiring start-ups to eliminate competition. This has allowed Ticketmaster to become the go-to ticketing platform for many artists, as it controls a significant number of the venues they perform at. The lawsuit has gained support from 30 state and district attorneys-general, highlighting the widespread concern over Live Nation’s alleged monopoly.
Jonathan Kanter, head of the DoJ’s antitrust unit, expressed his concerns, stating that the live music industry in America is suffering due to Live Nation-Ticketmaster’s illegal monopoly. Ticketmaster, however, has defended its market dominance by claiming that it offers a superior ticketing system compared to its competitors. Nonetheless, rival companies argue that Ticketmaster engages in exclusionary tactics, refusing to work with venues that choose alternative ticketing options.
Interestingly, this is not the first time Live Nation has faced scrutiny for its business practices. In 2010, the company merged with Ticketmaster, and the US Justice Department approved the merger on the condition that Live Nation would not retaliate against concert venues for using other ticketing companies. However, a 2019 investigation revealed that Live Nation had repeatedly violated this agreement. As a result, the prohibition on retaliation was extended until 2025.
The outcome of this lawsuit could have significant implications for the live music industry. If the allegations against Live Nation are proven true, it could lead to increased competition and greater choice for both artists and fans. However, if Live Nation successfully defends itself, it could solidify its position as the dominant force in the ticketing market. Only time will tell how this legal battle will unfold and what it means for the future of live music.
