WASHINGTON, May 23 (Reuters) - The U.S. Justice
Department and a group of 30 states and the District of Columbia
Thursday sued to break up Live Nation, arguing the big
concert promoter and its Ticketmaster unit illegally inflated
concert ticket prices and hurt artists.
"It is time to break up Live Nation," said U.S. Attorney
General Merrick Garland.
Concert fans and politicians for years have been calling for
a re-examination of Live Nation's purchase of Ticketmaster in
2010, especially after the ticket seller in 2022 botched sales
to Taylor Swift's first concert tour in years, sending fans into
hours-long online queues, charging prices that customers said
were too high and drawing charges of poor service.
Thursday's legal action underscores the aggressive approach
President Joe Biden's antitrust enforcers have adopted as they
seek to create more competition in a wide range of industries,
from Big Tech to healthcare to groceries.
"Live Nation relies on unlawful, anticompetitive conduct to
exercise its monopolistic control over the live events industry
in the United States at the cost of fans, artists, smaller
promoters, and venue operators," Garland said, adding that as a
result fans pay more in fees, artists have fewer opportunities
to perform and smaller promoters get squeezed out.
The suit says Live Nation directly manages more than 400
musical artists and controls around 60% of concert promotions at
major concert venues. It owns or controls more than 265 concert
venues in North America, and through Ticketmaster controls
roughly 80% or more of big venues' primary ticketing for
concerts.
In the lawsuit, filed in the Southern District of New York,
the DOJ argued the "vast scope" of Live Nation and Ticketmaster
allowed them to "insert themselves at the center and the edges
of virtually every aspect of the live music ecosystem."
U.S. senators in January 2023, in a hearing called after the
ticket sales fiasco, slammed Live Nation's lack of transparency
and inability to block bot purchases of tickets.
In 2010, the Justice Department approved Ticketmaster's
controversial merger with Live Nation, with conditions intended
to stop the combined company from harming competition.
In 2020, a court extended most of the DOJ's oversight of the
merger to 2025 because, the department said, Ticketmaster
retaliated against stadiums and arenas that opted to use other
ticketing companies.
Live Nation has said in the past that it was confident its
business practices were legal, and that the probe had been
prompted by complaints from rivals, including re-sellers.