The Department of Justice announced Thursday it is suing Live Nation, the parent company of Ticketmaster, alleging the company has built an anti-competitive monopoly in live events. Over 70% of all major concert venue tickets in the US are handled via Ticketmaster, and the DOJ says their market dominance has crushed competition in the sector, stagnating innovation and subjecting consumers to unfairly high prices.
The lawsuit has been in the works for nearly two years, but it received a big jolt last year after Taylor Swift fans found themselves unable to buy tickets for the singer’s “Eras” tour because of a botched rollout on Ticketmaster. Suddenly, senators were holding hearings about Live Nation with one eye on the approval of these newly minted antimonopolists.
But Live Nation says it has little to do with the high prices fans are experiencing, alleging that artists and venues themselves are driving up the costs for fans. They claim that breaking up the company would not lower ticket prices for fans, but the DOJ disagrees and says the case isn’t solely about price. With Live Nation’s dominant market share, smaller companies can’t survive and roll out products that could make tickets cheaper and the industry more competitive.
The DOJ says it wants a full jury trial, and the attorneys general of 30 states have all signed on to the federal case. No verdict is expected anytime soon, but don’t worry Swifties — GZERO is on the beat.