Log in

Legal

Arizona joins DOJ lawsuit targeting Live Nation for illegal monopoly

Posted 5/23/24

 Arizona Attorney General Kris Mayes joined the Justice Department inf filing a sweeping antitrust lawsuit against Ticketmaster and parent company Live Nation Entertainment on Thursday, accusing …

You must be a member to read this story.

Join our family of readers for as little as $5 per month and support local, unbiased journalism.


Already have an account? Log in to continue.

Current print subscribers can create a free account by clicking here

Otherwise, follow the link below to join.

To Our Valued Readers –

Visitors to our website will be limited to five stories per month unless they opt to subscribe. The five stories do not include our exclusive content written by our journalists.

For $6.99, less than 20 cents a day, digital subscribers will receive unlimited access to YourValley.net, including exclusive content from our newsroom and access to our Daily Independent e-edition.

Our commitment to balanced, fair reporting and local coverage provides insight and perspective not found anywhere else.

Your financial commitment will help to preserve the kind of honest journalism produced by our reporters and editors. We trust you agree that independent journalism is an essential component of our democracy. Please click here to subscribe.

Sincerely,
Charlene Bisson, Publisher, Independent Newsmedia

Please log in to continue

Log in
I am anchor
Legal

Arizona joins DOJ lawsuit targeting Live Nation for illegal monopoly

Posted

 Arizona Attorney General Kris Mayes joined the Justice Department inf filing a sweeping antitrust lawsuit against Ticketmaster and parent company Live Nation Entertainment on Thursday, accusing them of running an illegal monopoly over live events in America — squelching competition and driving up prices for fans.

The lawsuit, filed in federal court in Manhattan, was being brought with 30 state and district attorneys general and seeks to break up the monopoly they say is squeezing out smaller promoters and hurting artists.

"We allege that 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," 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. It is time to break up Live Nation-Ticketmaster.”

Phoenix venues for Live Nation are The Van Buren, Arizona Financial Theatre and Talking Stick Resort Amphitheatre, with Tickemaster providing a host of ticket sales to venues ranging from State Farm Stadium to Footprint Center.

Mayes in a statement said Arizona joined the lawsuit because of what she views as Live Nation's overarching impact on the industry and its effect on consumers.

"For years, Live Nation's anti-competitive and monopolistic practices have resulted in Arizonans paying more to see their favorite artists than they otherwise would have," Mayes said in a release. "The uncompetitive live entertainment market created by Live Nation has also left artists and venues without real any choice but to use Live Nation. This lack of competition hurts everyone, from fans to performers – and it's time to hold Live Nation accountable for its violations of the law."

The Justice Department accuses Live Nation of a slew of practices that allow it to maintain a stronghold over the live music scene, including using long-term contracts to keep venues from choosing rival ticketers, blocking venues from using multiple ticket sellers and threatening venues that they could lose money and fans if they don't choose Ticketmaster. The Justice Department says Live Nation also threatened to retaliate against one firm if it didn't stop a subsidiary from competing for artist promotion contracts.

Live Nation said in prepared remarks Thursday that the Justice Department's lawsuit “won’t solve the issues fans care about relating to ticket prices, service fees, and access to in-demand shows.”

Live Nation added that “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" — stating that most service fees go to venues. The company said it would defend itself “against these baseless allegations" and push for other reforms.

Live Nation has for years denied that it is violating antitrust laws and also said Thursday that competition had “steadily eroded Ticketmaster’s market share and profit margin.”

But competitor ticket sellers have long complained that Live Nation makes it difficult for them to disrupt the market with practices such as withholding acts if those venues don’t agree to use Ticketmaster’s service.

The lawsuit is the latest example of the Biden administration’s aggressive antitrust enforcement approach targeting companies accused of engaging in illegal monopolies that box out competitors and drive up prices. In March, the Justice Department filed a lawsuit against Apple alleging that the tech giant has monopoly power in the smartphone market. The Democratic administration has also taken on Google, Amazon and other tech giants.

“Today’s action is a step forward in making this era of live music more accessible for the fans, the artists, and the industry that supports them,” Deputy Attorney General Lisa Monaco said in a statement.

Ticketmaster, which merged with Live Nation in 2010, is the world’s largest ticket seller. During its annual report last month, the company said that Ticketmaster distributed more than 620 million tickets through its systems in 2023.

Around 70% of tickets for major concert venues in the U.S. are sold through Ticketmaster, according to data in a federal lawsuit filed by consumers in 2022. The company owns or controls more than 265 of North America's concert venues and dozens of top amphitheaters, according to the Justice Department.

The ticket seller sparked outrage in November 2022 when its site crashed during a presale event for a Taylor Swift stadium tour. The company said its site was overwhelmed by both fans and attacks from bots, which were posing as consumers to scoop up tickets and sell them on secondary sites. The debacle prompted congressional hearings and bills in state legislatures aimed at better protecting consumers.

The Justice Department allowed Live Nation and Ticketmaster to merge as long as Live Nation agreed not to retaliate against concert venues for using other ticket companies for 10 years. In 2019, the department investigated and found that Live Nation had “repeatedly” violated that agreement and extended the prohibition on retaliating against concert venues to 2025.

AP Reporters Michelle Chapman and Maria Sherman contributed to this report from New York.