Shares of Ticketmaster parent company Live Nation dropped more than 6% Tuesday following a report that the Department of Justice is preparing to sue the company for alleged antitrust violations.
The Wall Street Journal, citing unnamed sources familiar with the matter, reports that the DOJ will accuse Live Nation of harming competitors by “leveraging its dominance” in the marketplace. Live Nation is the largest concert promoter and ticketing company in the U.S.
The ticketing giant denies it has monopoly power and says it faces more competition now than it did in the past, The Journal reports.
Live Nation and Ticketmaster merged in 2010, resulting in the combined company controlling more than 70% of the ticketing and live eventS market. The ticketing giant has faced backlash for high prices and inadequate customer service. Live Nation faced major criticism in 2022 when it allegedly mishandled ticket sales for Taylor Swift’s tour. Critics said consumers were being treated unfairly.
Due to its market dominance, some U.S. senators advocated for the company to be broken up. But some analysts such such a move wouldn’t necessarily solve the issues.
Live Nation stock was down 6.5% near midday, making it the worst performer in the S&P 500 on Tuesday.