Signs are seen at the Live Nation NYC headquarters on May 23, 2024 in New York City.
Miguel M. Santiago | fake images
Nation's Live Entertainment has reached a settlement with the Justice Department over antitrust concerns surrounding its Ticketmaster platform, a senior Justice Department official said Monday.
The deal would allow Ticketmaster to unwind some of its exclusivity agreements with music artists and open the ticketing industry to greater competition. It still needs approval from more than 20 states that have sued and the court.
As part of the settlement, Ticketmaster agreed to pay approximately $280 million in civil penalties and will offer an independent, third-party ticketing system for other companies like SeatGeek to use its technology.
The top Justice Department official said Monday that Live Nation also agreed to sell at least 13 of its amphitheaters and will no longer be able to require artists to use other Live Nation products tied to their venues. However, later on Monday, Live Nation said it had not agreed to sell venues, as it rents, rather than owns, some locations.
Live Nation shares rose 5% in morning trading. Live Nation and Ticketmaster did not immediately respond to requests for comment.
Ticketmaster has long faced criticism that its dominance in the live events and ticketing space drives up prices for consumers. The company has come under increased scrutiny in recent years from fans who argue that it has become more difficult and expensive to get tickets to coveted events.
In 2022, backlash boiled over when the ticket release for Taylor Swift's Eras Tour was mishandled, leading to an investigation into the company. And in 2024, the Department of Justice (along with more than two dozen states) sued to dissolve Live Nation and Ticketmaster, which merged in 2010.
In September, Live Nation was separately sued by the Federal Trade Commission for what the agency called “illegal” ticket scalping tactics. The FTC said Ticketmaster controls approximately 80% of ticket sales for major concert venues.
In a statement Monday, New York Attorney General Letitia James said her office would continue to fight Live Nation's alleged monopoly even after its settlement with the Justice Department.
“The recently announced settlement with the US Department of Justice does not address the monopoly at the heart of this case, and would benefit Live Nation at the expense of consumers. We cannot accept it,” said James, who is joined by attorneys general from more than 20 other states.
— CNBC's Julia Boorstin and Stephen Desaulniers contributed to this report.
