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Another ten states have joined the federal government’s bid to break up Ticketmaster and Live Nation’s alleged illegal monopoly over the live entertainment industry, the Department of Justice (DOJ) said Monday.
The Department was joined by 29 states and the District of Columbia when it filed the lawsuit in the Southern District of New York in May. Now, the attorney’s generals of several states — including Louisiana, New Mexico, and Utah — are joining them, expanding the group of plaintiffs to 40 members.
They accuse Live Nation of relying on unlawful and uncompetitive conduct to maintain its control over the live entertainment industry, which hurts venues, artists, consumers, and promoters.
According to the DOJ’s complaint, Live Nation controls roughly 80% of primary ticketing at major concert venues and 60% of concert promotions. Smaller companies Live Nation internally identified as “threats” were acquired, while venues that didn’t work with it were threatened with losing access to some tours.
Dan Wall, who leads Live Nation’s corporate and regulatory affairs department, in May said that the lawsuit was the result of “intense political pressure” and lobbying from rivals and ticket brokers. The company also said that breaking it up would not result in lower ticket prices or fees.
In 2010, a merger between Live Nation and Ticketmaster was approved by the Justice Department under the condition that the new entity wouldn’t retaliate against venues that declined to work with Ticketmaster. That deal gave Live Nation Entertainment LYV+1.53% control of more than 70% of the ticketing and live events market.
In 2019, Live Nation settled a DOJ lawsuit that accused it of violating those terms on five separate occasions, including threats that the company would withhold tours from concert venues that did not renew deals with Ticketmaster. That consent decree was later extended to 2025 and an independent monitor was appointed to investigate further allegations.
In November 2022, the DOJ opened a new probe into the company to investigate how it beats out rival ticketing services, concert promoters, and other players in the live music industry, Politico reported at the time. The inquiry came as Live Nation endured a barrage of criticism when it allegedly mishandled ticket sales for Taylor Swift’s record-setting — and economy boosting — Eras Tour.
When tickets went on sale that month, the overwhelming demand crashed Ticketmaster’s website, leading to immense backlash from Swifties, public apologies in congressional hearings, and a new wave of scrutiny. Several U.S. senators have advocated for the company to be broken up, as have rivals.