Justice Department to File Antitrust Lawsuit Against Live Nation in Coming Weeks
The Department of Justice is reportedly preparing to file an antitrust lawsuit against Live Nation Entertainment in the coming weeks, following a two-year investigation into alleged market-power abuses.
Live Nation logo against black
The investigation focuses on Live Nation's artist terms and whether its venue agreements restrict competition. During the company's Q3 2023 earnings call, CFO Joe Berchtold downplayed the investigation's significance, stating they were still in the document production phase.
In February 2024, the DOJ issued new information requests, though specific allegations remain unknown. This comes amid ongoing congressional scrutiny over issues including:
- All-in ticket pricing practices
- The 2022 Taylor Swift Eras Tour pre-sale problems
- Rising ticket costs
- Market dominance concerns since the 2010 Ticketmaster merger
Live Nation has responded to criticism through various channels, including a detailed article by EVP Dan Wall explaining ticket pricing practices. The company reported strong financial performance in 2023, with revenue reaching $22.7 billion, a 36% increase from the previous year.
US Department of Justice building exterior
The company also faces a separate investigation from a former Louisiana attorney general. Live Nation's stock (NYSE: LYV) recently experienced a 6.5% decline, trading at $93.25 per share.
Michael Rapino in black shirt
The outcome of this investigation could significantly impact the live entertainment industry's competitive landscape and ticket pricing practices moving forward.
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