Per a report from the Wall Street Journal, the U.S. Department of Justice is moving to sue Live Nation after the company violated antitrust laws. Live Nation is the biggest ticket provider and concert promoter in the United States, and has come under fire in the past few years for controversial practices and excessive fees.
Ticketmaster is also owned by Live Nation Entertainment. The companies merged in 2010, becoming the 'largest live entertainment company in the world." The merger was challenged by Sen. Charles Schumer (D-NY) and Rep. Bill Pascrell, Jr. (D-NJ.) Following "technical difficulties" during the release of tickets for a Bruce Springsteen show, the congressmen called for an investigation into Ticketmaster's practices.
Schumer wrote that the merger would "give a giant, new entity unrivaled power over concertgoers and the prices they pay to see their favorite artists and bands." He called for the Justice Department and Federal Trade Commission to carefully scrutinize the merger.
Live Nation was dubbed a monopoly by Congress members both before and during the hearing--and in the 1990s.
In 1994, rock band Pearl Jam claimed that Ticketmaster has a "virtually absolute monopoly on the distribution of tickets to concerts." Thirty years later, this problem still persists.
In 2022, a battle for Taylor Swift's Eras Tour tickets further highlighted Live Nation's deep flaws. Millions of Swifties were left without tickets when Ticketmaster's system failed on the day tickets went on sale.
The company responded to the failure, apologizing to Swift and Swifties and claiming that it is "always working to improve the ticket buying experience. Especially for high demand onsales, which continue to test new limits."
Eras-Gate led to a congressional hearing where Democrats and Republicans united to critique the company's monopoly on the industry and negative impact on other ticketing agencies, fans and artists themselves.
The hearing drew chuckles and eye rolls from the internet when several members of Congress used Taylor Swift lyrics in their questions and statements challenging Live Nation. Sen. Richard Blumenthal (D-Conn.) quipped that Ticketmaster "ought to look in the mirror and say, 'I'm the problem. It's me.'"
Sen. Mike Lee (R-Utah) deemed Ticketmaster's practices as a "nightmare dressed like a daydream," a nod to Swift's "Blank Space."
Swifties went as far as to file a class action lawsuit against Live Nation following the Eras debacle. One fan, Michele Sterioff, filed her initial suit in December 2022; she sued the company for exploiting its "dominance to charge 'ever more supracompetitive ticketing fees for both primary and secondary ticketing services.'"
Julie Barfuss, another Swiftie, was joined by more than two dozen other fans in a separate suit in which they alleged that Ticketmaster forced artists to have "no choice but to sell their tickets through Ticketmaster, and their fans have no choice but to purchase tickets through Ticketmaster's primary platform."
In an interview with Pitchfork, Barfuss said that "it is so messed up that this is what it takes to get tickets. We need to try to figure out a better way."
Live Nation President and CFO Joe Berchtold claimed that "venues set service and ticketing fees" more often than Ticketmaster does. Berchtold argues that Live Nation controls only 5% of the concert venues throughout the United States, but these venues brought in nearly 50% of concert sales in 2022.
A study by the American Economic Liberties Project determined that Ticketmaster "services 78% of the top grossing arenas in the country." Among these arenas, Ticketmaster contributed 83% of the gross revenue, a staggering $2.4 Billion.
The Department of Justice is expected to file suit "as soon as next month."
