01:47 PM EDT, 05/23/2024 (MT Newswires) -- The US Department of Justice and 30 state and district attorneys general sued Live Nation Entertainment ( LYV ) and its Ticketmaster unit for alleged market monopolization and anticompetitive practices, sending the live entertainment company's stock tumbling.

The civil antitrust lawsuit, which was filed Thursday in the US District Court for the Southern District of New York, seeks a breakup of Live Nation-Ticketmaster. The suit accuses the company of "unlawfully" maintaining monopolies in several concert promotions and primary ticketing markets.

"We allege that Live Nation relies on unlawful, anticompetitive conduct to exercise its monopolistic control over the live events industry in the (US) at the cost of fans, artists, smaller promoters, and venue operators," Attorney General Merrick Garland said in a statement. "The result is that fans pay more in fees, artists have fewer opportunities to play concerts, smaller promoters get squeezed out, and venues have fewer real choices for ticketing services."

According to the complaint, Live Nation-Ticketmaster "exploits" its longtime relationship with potential competitor-turned-partner Oak View Group, which has avoided bidding against Live Nation for artist talent and influenced venues to enter into exclusive agreements with Ticketmaster in recent years.

The company uses its power over performers, venues, and independent promoters in ways that negatively affects competition, according to the complaint. Live Nation-Ticketmaster also "imposes barriers" to competition that restrict the entry and expansion of its rivals. The lawsuit includes a request for structural relief.

Live Nation shares were down 7.8% in Thursday afternoon trade.

The lawsuit won't help lower ticket prices or service fees, Live Nation told MT Newswires in an e-mailed statement, adding that the company will defend against the Justice Department's "baseless allegations."

"The DOJ's lawsuit won't solve the issues fans care about relating to ticket prices, service fees, and access to in-demand shows," the company said. "Calling Ticketmaster a monopoly may be a PR win 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 the bulk of service fees go to venues, and that competition has steadily eroded Ticketmaster's market share and profit margin."

Price: 93.75, Change: -7.66, Percent Change: -7.55