The Department of Justice (DOJ) and 30 state attorneys general have filed an antitrust lawsuit against Live Nation, seeking to split the company from its Ticketmaster subsidiary. The 124-page complaint alleges multiple violations of the Sherman Antitrust Act and state competition laws.

Key Allegations:

• Live Nation and Ticketmaster leverage their joint ownership to eliminate competition
• The companies retaliate against venues that work with rivals
• They restrict artists' access to venues
• They block venues from using multiple ticket providers
• The merger has led to reduced innovation and higher costs for consumers

The lawsuit specifically highlights Live Nation's relationship with Oak View Group, alleging they established a "competitive détente" where Oak View Group avoided concert promotions while Live Nation stayed away from arena consulting.

Live Nation's Response:

• Denies being the cause of fan frustration in live entertainment
• Calls monopoly allegations "absurd"
• Claims they're a casualty of the administration's populist approach to antitrust enforcement
• Argues their size was achieved through marketplace success
• Points to the Obama Administration's previous approval of the merger

Live Nation's stock dropped approximately 8% following the announcement. The company maintains that breaking up Live Nation and Ticketmaster would not be legally permissible.

The Coalition for Ticket Fairness supports the DOJ's action, emphasizing the need for federal legislation to address the near-monopoly and its impact on fans. They note Live Nation's recent pivot to lobbying for state-level legislation in Maryland, California, and Colorado.

Related Articles

Previous Articles