Michigan joins lawsuit against Live Nation, Ticketmaster over high concert ticket fees

Tired of those pesky fees ballooning the cost of buying tickets for concerts and other live events? Turns out the U.S. Department of Justice is, too.

On Thursday, the DOJ's antitrust division filed a lawsuit against Live Nation and its subsidiary Ticketmaster, alleging the live entertainment ticket sale giants have monopolized the industry in a way that handicaps competition and hikes ticket prices for consumers.

Michigan is among the 29 states listed as co-plaintiffs in the lawsuit filed in the Southern District of New York, a federal district court. The DOJ and the states are asking the court to break up Live Nation and Ticketmaster, which merged in 2010. How the companies should be split isn't specified in the lawsuit.

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, DOJ attorneys wrote in a 108-page brief. Among the venues operated by Live Nation are Detroit's Saint Andrew's Hall and The Fillmore Detroit, Pine Knob Music Theatre in Clarkston and GLC Live at 20 Monroe in Grand Rapids. The company bills itself as “the largest live entertainment company in the world."

In its lawsuit, the DOJ argues Live Nation and Ticketmaster exploit the market for entering agreements with concert venues and artists by coercing other companies into not bidding for them; threatening retaliation against other companies attempting to enter the market; buying smaller potential competitors; threatening venues that try to work with other companies; locking those venues into long-term contracts to reduce competitive pressure; preventing venues from using multiple ticket vendors; and restricting the number of venues artists and entertainers can contract with.

Live Nation disputes that its practices are to blame for rising ticket costs. In a statement, a company executive wrote factors like increasing production costs, artist popularity, and online "ticket scalping" are driving higher costs. Live Nation also states the majority of proceeds from ticket fees go to the venue, not the ticketing company.

Still, plaintiffs say Live Nation and Ticketmaster have monopolized the live entertainment ticket sales industry.

“Michigan concertgoers deserve the chance to experience the thrill of seeing their favorite artist live, in a venue close to home, without breaking the bank,” Michigan Attorney General Dana Nessel said in a statement. “Unfortunately, this dream is out of reach for many because of Live Nation’s illegal monopoly. A truly competitive marketplace is essential to providing consumers with choice."

The DOJ argues Live Nation and Ticketmaster's practices force customers into paying a "Ticketmaster Tax," adding several fees to the actual ticket price.

"The real world, practical costs of Live Nation’s strategy are well-known. Public frustration with concert ticket pricing and sales is a constant drumbeat," attorneys wrote. "The fees that must be paid to attend a live concert in America far exceed fees in comparable parts of the world."

The lawsuit lists added costs for customers, like fees described as being for service, convenience, payment processing and more.

Last year, fans railed against Ticketmaster for tacking on fees for concert tickets to see The Cure, a British rock band. While members of the band, who played at Pine Knob last summer as part of their tour, called the fees a "greedy scam" on social media and said they never agreed to the concert fees, customers reported paying more than $21 in fees for each $20 ticket.

Pop mega-star Taylor Swift also criticized Ticketmaster last year, after high demand for shows led to the cancellation of the first public sale for tickets to the Eras Tour, despite the company making assurances it could meet the demand.

Live Nation and Ticketmaster defended their practices Thursday. In an online post, Dan Wall, Live Nation's executive vice president of corporate and regulatory affairs wrote the DOJ was bowing to political pressure, and that competition in the ticket sales industry has increased since Live Nation and Ticketmaster merged.

"It is also clear that we are another casualty of this Administration’s decision to turn over antitrust enforcement to a populist urge that simply rejects how antitrust law works," Wall wrote. "Some call this 'Anti-Monopoly,' but in reality it is just anti-business."

Editor's note: This story has been updated with additional comment from Live Nation.

Contact Arpan Lobo: alobo@freepress.com. Follow him on X (Twitter) @arpanlobo.

This article originally appeared on Detroit Free Press: DOJ files antitrust against Live Nation, Ticketmaster, Michigan joins