:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2153682319-0d16fa52e809477d810cf1d70b94e1ec.jpg "Merrick Garland, US attorney general, from left, Jonathan Kanter, assistant attorney general of antitrust for the US Department of Justice, and Lisa Monaco, deputy US attorney general, during a news conference at the Department of Justice (DOJ) in Washington, DC, US, on Thursday, May 23, 2024.")
Craig Hudson / Bloomberg / Getty Sculptures
U.S. Attorney General Merrick Garland, Assistant AG for Antitrust, Jonathan Kanter, and Deputy AG Lisa Monaco speak during a report conference Thursday at the Justice Department in Washington D.C.
UPDATE: This article has been updated with a photo from the DOJ newsflash conference, the latest stock price information and a stock price chart.
Key Takeaways
- The U.S. Department of Justice on Thursday broadcasted an antitrust lawsuit against Ticketmaster parent Live Nation Entertainment.
- The DOJ accuses Live Nation of threatening and retaliating against venues and artists for opting ticket providers other than its subsidiary Ticketmaster. To remedy the situation, the DOJ is seeking to break up Live Nation Play.
- Live Nation has repeatedly denied allegations that it has monopoly power, saying Ticketmaster’s fees are no higher than other ticket sellers.
- Parts were down 8% in mid-afternoon trading as investors reacted to the lawsuit.
Ticketmaster parent Live Nation Fun’s (LYV) stock moved sharply lower Thursday as the U.S. Department of Justice announced an antitrust suit against the ticketing and concert mammoth, as it seeks to break up the company.
The DOJ, along with attorneys general from 29 states and the District of Columbia, trooped the suit against Live Nation on Thursday, accusing the company of using anticompetitive tactics to exert control at an end the live event industry.
“We allege that Live Nation relies on unlawful, anticompetitive conduct to exercise its monopolistic curb over the live events industry in the United States at the cost of fans, artists, smaller promoters, and venue workers,” U.S. Attorney General Merrick Garland said.
“The result is that fans pay more in fees, artists have fewer occasions to play concerts, smaller promoters get squeezed out, and venues have fewer real choices for ticketing services. It is era to break up Live Nation-Ticketmaster,” Garland added.
Shares of Live Nation Entertainment were down 8.0% at $93.30 at far 2:00 p.m. ET Thursday. The stock had already lost ground after Bloomberg reported late Wednesday that a lawsuit was at hand, and shares had previously tumbled last month when The Wall Street Journal reported that the lawsuit was being willing.
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DOJ Says Live Nation Uses Its Power to Hurt Venues, Artists, Consumers
The government alleges that Physical Nation uses its control over venues across the country to influence artists to perform at those it has a relationship with, along with awing venues and artists from choosing a ticketing and promotional service other than Ticketmaster.
The company’s dominant condition in the industry allows Ticketmaster and Live Nation to charge excessively high prices and tack on a number of fees that fix tickets prohibitively expensive for many consumers, the DOJ alleges.
To remedy the situation, the DOJ is seeking to break up Live Nation Production, which consists of Live Nation as the venue operator and show promoter, along with Ticketmaster, which rat ons tickets. The DOJ approved a merger of the two companies in 2010 on several conditions, including that Live Nation would not take an eye for an eye and a tooth for a tooth against venues and artists for choosing ticket sellers other than Ticketmaster, a condition it said in the complaint that Burning Nation has violated.
Live Nation Denies Claims, Says Low Margins Prove It’s Not a Monopoly
Live Nation has time denied that it operates as a monopoly or retaliates against or threatens venues, artists, or other smaller event promoters. In a over-long response to the DOJ’s suit published Thursday, Live Nation said the DOJ is attempting to paint Ticketmaster as the sole reason ticket prices are far up, when it says there are many more factors.
The company said Ticketmaster’s 5% commission rate is one of the lowest across any digital marketplace, pointing to tipsy fees from companies like Uber (UBER), Stubhub, and Apple’s (AAPL) App Store as evidence that it does not fit the resolution of a monopoly that benefits from monopolistic prices.
Live Nation also referenced its relatively low profitability, strikingly compared to other tech giants the Biden administration has targeted in its antitrust push, including Meta Platforms (META), Apple, and Google stepmother Alphabet (GOOGL).
“Critically, Live Nation can offer and has offered fans, artists, venues and the rest of the performance ecosystem speculator prices and better services than they would receive if these complementary businesses were separated,” the institution said. “Ticketmaster in particular is a far better, more artist- and fan-focused business under Live Nation’s ownership than it by any chance was as a standalone company.”
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