The US Department of Justice set to file lawsuit against Live Nation
The United States Department of Justice is reportedly set to file a lawsuit against entertainment company Live Nation for monopolisation in the industry. Live Nation also owns Ticketmaster.
Live Nation is one of the biggest players in the live entertainment industry, it produces over 20,000 shows each year for more than 2,000 artists across the world. Alongside events, the company also encompasses artist management and ticketing.
Since the promotions company merged with Ticketmaster in 2010, it has dominated the live industry under the name of Live Nation Entertainment. At the time, the US government has approved of the deal, but now, the Department of Justice is hoping to tackle the company’s growing monopolisation with a lawsuit, according to The New York Times.
The publication states that the Justice Department plans to sue Live Nation after an investigation by the antitrust division. The lawsuit will cite Live Nation’s merger with Ticketmaster as a major part of its monopolisation. It will suggest that Live Nation accumulated power through exclusive ticketing contracts with venues obtained by Ticketmaster.
Live Nation operates several venues, including the Manchester Apollo and London’s Shepherd’s Bush Empire in the United Kingdom, while Ticketmaster runs exclusive ticketing clauses with venues. The lawsuit will question whether Live Nation pushed for its artists to play shows at venues it owns, as well as at venues where Ticketmaster have ticketing contracts in place.
Live Nation’s monopoly, achieved through business decisions such as this, has allowed them to hike prices and fees for concert-goers while also thwarting the success of their competitors.
Live Nation and Ticketmaster have made some small movements towards assisting the industry they have monopolised, such as offering direct donations to the Music Venue Trust, but the rest of the live music industry is still fighting to exist alongside them.
While Live Nation makes huge profits each year, reporting revenue of $22.7billion in 2023, its competitors, as well as independent grassroots promoters, artists and venues are struggling to survive. Last year, 125 music venues in the United Kingdom closed down amidst issues such as the cost-of-living crisis.
Meanwhile, music fans are also losing out due to the monopoly, as demonstrated by the frustrations Taylor Swift fans experienced while trying to secure Eras Tour tickets. After Ticketmaster crashed during the tour’s pre-sale, the company came under fire from fans for their ticketing system, prompting US officials to speak out about the monopoly.
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