Live Nation, the concert giant that owns Ticketmaster, is expected to face an antitrust lawsuit as early as next month, according to a report by The Wall Street Journal. This anticipated lawsuit follows an investigation into the company’s handling of ticket and venue negotiations. Live Nation has long been criticized for its high ticket fees and its practice of forcing venues to sign exclusive long-term contracts, which has drawn the ire of both fans and artists.
Justice Department’s Probe into Live Nation
The Justice Department is reportedly prepared to file the antitrust suit, alleging that Live Nation has leveraged its dominance in the market to suppress competition. Ticketmaster holds a significant 80% of the market for event sales in the country’s largest venues, maintaining exclusive contracts with multiple stadiums and arenas. Violating antitrust laws can carry both criminal and civil penalties, with criminal penalties capped at 10 years of jail time and $100,000,000 per violation.
Outrage Following Ticketmaster Website Crash
The investigation into Live Nation gained momentum following a massive outcry from fans when the Ticketmaster website crashed during a presale of Taylor Swift’s “Eras Tour” event in November 2022. Swift released a statement shortly after the incident expressing her frustration and describing the outage as “excruciating”. Some of Swift’s fans, known as Swifties, subsequently filed a lawsuit against the ticketing giant for violating antitrust laws and “intentionally and purposefully” misleading fans, prompting a closer examination from federal authorities.
Despite the allegations, the company has denied any wrongdoing. A Ticketmaster spokeswoman responded to the news of the anticipated lawsuit by stating that “Ticketmaster has more competition today than it has ever had, and the deal terms with venues show it has nothing close to monopoly power”.
