DOJ sues Live Nation over ticket costs, seeks to open access, lower ticket prices for fans
Fans of Megan Thee Stallion, Pink and Taylor Swift recently ponied up big bucks to Ticketmaster for tickets to concerts at the Wells Fargo Center, Citizens Bank Park and Lincoln Financial Field.
But were those fans duped into overpaying?
The Department of Justice believes so, and joined with the attorneys general from dozens of states, including Pennsylvania, in a lawsuit targeting Ticketmaster's parent company, Live Nation Entertainment.
Ticketmaster is the sole, primary ticket seller for concerts at Citizens Bank Park, Lincoln Financial Field and the Wells Fargo Center.
DOJ hits Ticketmaster with lawsuit, claiming ticket price manipulation
The lawsuit seeks to lower prices for fans and open venue doors to more musicians.
Live Nation, which generates $22 billion a year in revenue, owns or controls more than 265 concert venues in North America, including 60 of the top 100 amphitheaters, such as the Hollywood Bowl in Los Angeles, according to the department. The company bills itself as “the largest live entertainment company in the world."
Analysis: DOJ's Ticketmaster lawsuit: 'Break it up': DOJ sues Live Nation and Ticketmaster to reduce ticket prices
In a prepared statement, the Pennsylvania Attorney General's Office noted that Ticketmaster's alleged ticket price manipulation was particularly prevalent in the Philadelphia market.
"The suit filed Thursday alleges that Live Nation — owner and operator of numerous venues nationwide, including Pennsylvania — and Ticketmaster — the ticketing service giant — form an illegal monopoly over the live entertainment industry," read a portion of Attorney General Michelle Henrey's statement on the Ticketmaster lawsuit. "The suit also alleges that Live Nation has engaged in anti-competitive practices to maintain its monopoly.
"Live Nation and Ticketmaster’s dominance has impacted fans across the Commonwealth. In 2022, Pennsylvanians spent approximately $1.5 billion dollars on live entertainment, according to the Bureau of Economic Analysis."
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Henry also publicized the lawsuit through a post on social media platform X:
My office is leading a bipartisan coalition of 30 states, along with the @TheJusticeDept, in an antitrust lawsuit against #LiveNation Entertainment, Inc. and its wholly-owned subsidiary, #Ticketmaster, LLC: https://t.co/vBUeARCOhSpic.twitter.com/En6aKkoDUq
— Michelle Henry (@PAAttorneyGen) May 23, 2024
What else does the Ticketmaster lawsuit allege?
The lawsuit alleged the company’s “flywheel” strategy captures fees and revenue from concert fans and sponsorships, pours the revenue into signing artists to exclusive promotion deals and wields the cache of artists to sign venues into exclusive, long-term ticketing deals.
The lawsuit is much broader than the one that led to the Justice Department reaching a consent decree in 2010 that allowed Live Nation to merger with Ticketmaster, according to department officials. The lawsuit alleges monopolization in all aspects of the business, including promotion of events, access to venues and ticket sales.
Live Nation responds to DOJ lawsuit, cites low margins, increasing competition
"The complaint — and even more so the press conference announcing it — attempt to portray Live Nation and Ticketmaster as the cause of fan frustration with the live entertainment industry. It blames concert promoters and ticketing companies — neither of which control ticket prices — for high ticket prices," read portion of Live Nation's response. "It ignores everything that is actually responsible for higher ticket prices, from increasing production costs to artist popularity, to 24/7 online ticket scalping that reveals the public’s willingness to pay far more than primary tickets cost. It blames Live Nation and Ticketmaster for high service charges, but ignores that Ticketmaster retains only a modest portion of those fees.
"It is also absurd to claim that Live Nation and Ticketmaster are wielding monopoly power," continued Live Nation's response. "The defining feature of a monopolist is monopoly profits derived from monopoly pricing. Live Nation in no way fits the profile. Service charges on Ticketmaster are no higher than elsewhere, and frequently lower."
Damon C. Williams covers trending and regional developments for PhillyBurbs.com. Support our journalism with a subscription.
This article originally appeared on Bucks County Courier Times: DOJ sues Ticketmaster, looking to lower concert ticket prices
