US to sue Ticketmaster owner Live Nation
The US Department of Justice (DOJ) is set to file a competition lawsuit against entertainment conglomerate Live Nation, potentially as early as Thursday, according to multiple sources familiar with the matter who confirmed to CBS News.
The lawsuit is expected to target the business practices of Ticketmaster’s parent company, Live Nation, as per the sources.
In competition-related lawsuits, the DOJ often aims to compel companies to divest parts of their business or alter their operational methods.
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The federal government will be joined in its legal challenge by several state attorneys general, as initially reported by the Washington Post.
The lawsuit is anticipated to claim that Live Nation’s business practices, which include concert promotion, ticket sales, and venue ownership, have suppressed competition and reduced consumer choice, thereby driving up prices.
This legal action follows a multi-year investigation by the DOJ’s antitrust division. In 2022, CBS News disclosed that the DOJ was scrutinising Live Nation and its Ticketmaster unit.
Live Nation Entertainment was formed in 2010 from the merger of Live Nation, a US-based event promoter, and Ticketmaster, a ticket sales and distribution company.
Although the DOJ approved the merger at the time, there were concerns about the creation of a dominant entity in the live entertainment industry.
Live Nation Entertainment has faced mounting criticism from fans, legislators, artists, and competitors, accusing the company of exerting excessive control over live entertainment events both in the US and internationally.
Following the news of the impending DOJ lawsuit, Live Nation’s shares dropped by over 6% in after-hours trading in New York.