The Justice Department announced Thursday that it has filed a lawsuit against Live Nation Entertainment, the parent company of Los Angeles-based Ticketmaster, seeking to break up the company over allegations that it created an illegal monopoly over the live entertainment industry.
The government, along with 29 states and the District of Columbia, accuses Live Nation of using its power to dominate the industry by forcing venues into exclusive ticketing contracts and influencing artists to only use its services, threatening its competitors with financial retaliation.
The lawsuit was first reported by Bloomberg.
Live Nation currently controls more than 265 concert venues in North America and manages more than 400 music artists, according to the Department of Justice.
Live Nation issued a statement Thursday in response to the lawsuit. “The Department of Justice's lawsuit will not resolve the issues that concern fans regarding ticket prices, service fees, and access to high-demand shows,” the company said. “Calling Ticketmaster a monopoly may be a public relations victory for the DOJ in the short term, but it will lose in court because it ignores the basic economics of live entertainment, such as the fact that most of the service fees they go to venues, and that competition has steadily eroded Ticketmaster's market share and profit margin.
“Our growth comes from helping artists tour globally, create lasting memories for millions of fans, and support local economies across the country by maintaining quality jobs. “We will defend ourselves against these unfounded accusations, take this opportunity to shine a light on the industry, and continue to push for reforms that truly protect consumers and artists.”
This is a developing story.
