Justice Department Sues Ticketmaster and Live Nation for Alleged Monopoly in Live Events Industry: Impact on Consumers, Artists, and Competition

New York, New York, USA United States of America
Approximately 70% of tickets for major concert venues in the U.S. are sold through Ticketmaster
Independent venues have faced difficulties negotiating deals due to Ticketmaster's market position
Justice Department files lawsuit against Ticketmaster and Live Nation for alleged monopoly in live events industry
The lawsuit alleges that Live Nation's monopoly power has hurt consumers by limiting competition and driving up prices for fans
The lawsuit seeks to dismantle the monopoly and potentially lead to lower ticket prices, more agency for artists, and increased success for smaller promoters
Justice Department Sues Ticketmaster and Live Nation for Alleged Monopoly in Live Events Industry: Impact on Consumers, Artists, and Competition

In a significant move, the Justice Department has filed lawsuits against Ticketmaster and its parent company Live Nation Entertainment, accusing them of running an illegal monopoly in the live events industry in America. The lawsuit alleges that approximately 70% of tickets for major concert venues in the U.S. are sold through Ticketmaster, giving the company significant control over ticket sales and prices.

The Justice Department argues that Live Nation's monopoly power has hurt consumers by limiting competition and driving up prices for fans. The lawsuit also accuses Live Nation of retaliating against other promotion companies and venues that worked with its rivals, further consolidating its market position.

Independent venues not owned by Live Nation have faced difficulties negotiating for good deals due to the company's monopoly power. This issue has been a concern for many, including Morgan Harper, who helped advocate for the Department of Justice investigation into Live Nation.

The lawsuit seeks to dismantle this monopoly and potentially lead to lower ticket prices, more agency for artists in choosing venues, and increased success for smaller promoters in the long run. The case is being closely watched by fans, performers, and industry experts alike.

Live Nation has denied violating antitrust laws and plans to defend itself against the allegations. The company argues that most service fees go to venues, while outside competition has steadily eroded Ticketmaster's market share.

The lawsuit comes as part of a broader effort by the Biden administration to address monopolies and promote competition in various industries. The case is being filed in the Southern District of New York.



Confidence

91%

Doubts
  • Are there any counterarguments from Live Nation or Ticketmaster regarding their market position and service fees?
  • What specific actions have been taken by Live Nation against competitors and independent venues?

Sources

97%

  • Unique Points
    • The Justice Department sued Ticketmaster and its parent company Live Nation, accusing them of running an illegal monopoly over live events in America.
    • Approximately 70% of tickets for major concert venues in the U.S. are sold through Ticketmaster. The company owns or controls more than 265 of North America’s concert venues and dozens of top amphitheaters.
    • Live Nation denies violating antitrust laws and argues that most service fees go to venues, while outside competition has steadily eroded Ticketmaster’s market share. The company plans to defend itself against the baseless allegations.
    • A breakup between Live Nation and Ticketmaster is on the table as part of potential remedies, which could lead to lower ticket prices, more agency for artists in choosing venues, and increased success for smaller promoters in the long run.
  • Accuracy
    • Approximately 70% of tickets for major concert venues in the US are sold through Ticketmaster.
    • Live Nation denies violating antitrust laws and argues that most service fees go to venues.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication

96%

  • Unique Points
    • The DOJ accuses Live Nation of hurting customers and violating antitrust laws by controlling the live event industry from ticketing, promotion, and venue ownership standpoints.
    • Independent venues not owned by Live Nation face difficulties negotiating for good deals due to Live Nation's monopoly power.
    • Morgan Harper helped advocate for the Department of Justice investigation into Live Nation, which may have been influenced by Taylor Swift fans (Swifties) who were unhappy with Ticketmaster's ticket distribution and resulting website crash.
  • Accuracy
    • Live Nation denies violating antitrust laws
    • Approximately 70% of tickets for major concert venues in the U.S. are sold through Ticketmaster
    • The suit alleges that Live Nation effectively limits competition by holding so much power across so many aspects of the business
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (95%)
    The author expresses a clear opinion that Live Nation's monopoly is harmful to consumers and independent businesses. She quotes Morgan Harper, Director of Policy & Advocacy for the American Economic Liberties Project, who also expresses this opinion and provides specific examples of how Live Nation's monopoly power has negatively impacted consumers and independent businesses. The author does not use language that depicts one side as extreme or unreasonable.
    • It's huge for consumers all over the country, especially here in Columbus, because we have a lot of music fans here and we've all been paying more for every ticket through fees and these different service charges.
      • It's just a chokehold until eventually I think the grand scheme is to make it so that people can't operate without operating under their umbrella in one way or another. They'll either buy your venue or open one right next to you. It's just, it's a very cutthroat approach, in my opinion.
        • They're blocking competition, that they're not allowing venues to think about other ticketing platforms that they might use. Live Nation Ticketmaster has way too much power over artists, over us as consumers, over independent businesses.
        • Site Conflicts Of Interest (100%)
          None Found At Time Of Publication
        • Author Conflicts Of Interest (100%)
          None Found At Time Of Publication

        92%

        • Unique Points
          • Live Nation effectively limits competition by holding so much power across so many aspects of the business.
          • Live Nation is accused of retaliating against other promotion companies and venues that worked with its rivals.
          • Approximately 70% of tickets for major concert venues in the U.S. are sold through Ticketmaster.
        • Accuracy
          • Live Nation currently owns or controls over 250 concert venues across North America and controls around 60 percent of concert promotions at major concert venues in the US.
          • Live Nation denies violating antitrust laws and argues that most service fees go to venues, while outside competition has steadily eroded Ticketmaster’s market share.
        • Deception (100%)
          None Found At Time Of Publication
        • Fallacies (80%)
          The author makes an appeal to authority by quoting Attorney General Merrick Garland and a senior Justice official. The author also uses inflammatory rhetoric by stating 'it is time to break up Live Nation-Ticketmaster' without providing any evidence or reasoning for this statement.
          • ]It is time to break up Live Nation-Ticketmaster[.
          • Quoting Attorney General Merrick Garland: 'It is time to break up Live Nation-Ticketmaster.',
          • Quoting a senior Justice official: 'How is the system set up? How is Live Nation’s control at all levels of the system allowing for a process that’s distorted in part by Live Nation’s power?'
        • Bias (90%)
          The author does not demonstrate any clear bias in the article. However, there are some statements that could be perceived as having a slight pro-government or anti-monopoly bias due to the topic of the article and the fact that it is reporting on a lawsuit filed by the Department of Justice. The author does not use language that depicts one side as extreme or unreasonable, and there is no disproportionate number of quotations reflecting a specific position. However, there are several instances where the author quotes statements from government officials and attorneys general that could be perceived as having a pro-government bias. Additionally, the author does not use any language that demeans or disparages Live Nation or Ticketmaster, but there are some statements that could be interpreted as critical of their business practices.
          • According to Thursday’s filing, Live Nation Entertainment currently owns or controls over 250 concert venues across North America, and controls around 60 percent of concert promotions at major concert venues across the U.S. The company also directly manages more than 400 musical acts.
            • ]It is time to break up Live Nation-Ticketmaster[.
              • The Department of Justice and the states allege that Live Nation and Ticketmaster engaged in several forms of anticompetitive conduct, including retaliating against other promotion companies and venues that worked with its rivals; locking out competitors with long-term, exclusive ticketing contracts; restricting musicians’ access to live event venues; and strategically acquiring smaller, independent companies that Live Nation allegedly perceived as threats to its dominance.
                • To us, that’s a little bit of a red herring,” the official continued, referring to Live Nation’s previous argument. “How is the system set up? How is Live Nation’s control at all levels of the system allowing for a process that’s distorted in part by Live Nation’s power?
                • Site Conflicts Of Interest (100%)
                  None Found At Time Of Publication
                • Author Conflicts Of Interest (100%)
                  None Found At Time Of Publication

                90%

                • Unique Points
                  • The Department of Justice and a group of State Attorneys General have filed an antitrust suit against Live Nation and Ticketmaster.
                  • Live Nation and Ticketmaster’s market share has declined since 2010.
                  • Net profits of Live Nation and Ticketmaster do not indicate monopoly power.
                • Accuracy
                  • The lawsuit follows intense political pressure on DOJ and a long-term lobbying campaign from rivals trying to limit competition.
                  • Live Nation denies violating antitrust laws and argues that most service fees go to venues, while outside competition has steadily eroded Ticketmaster’s market share.
                  • Approximately 70% of tickets for major concert venues in the U.S. are sold through Ticketmaster.
                  • The attempt to break up Live Nation would create more competition and give consumers and smaller independent businesses more options.
                • Deception (80%)
                  The author makes several statements that are misleading or inaccurate. She implies that the Department of Justice (DOJ) lawsuit against Live Nation and Ticketmaster is baseless and ignores the real causes of high ticket prices. However, she fails to acknowledge that the DOJ's complaint specifically alleges anticompetitive practices by these companies, such as exclusive deals with artists and venues that limit competition. The author also quotes Dan Wall, an executive at Live Nation, who argues that declining market share and net profits prove there is no monopoly power. However, this argument ignores the fact that market share and profits are not the only factors in determining monopolistic behavior. Furthermore, the author's use of emotive language such as 'absurd' to describe the DOJ's actions is an attempt to manipulate readers emotionally and undermine their credibility.
                  • In fact, primary ticketing is one of the least expensive digital distributions in the economy.
                  • Despite admitting that ‘[t]he face values of tickets are typically set or approved by artists,’ it blames concert promoters and ticketing companies—neither of which control ticket prices—for high ticket prices.
                  • It ignores everything that is actually responsible for higher ticket prices, from rising production costs, to artist popularity, to 24/7 online ticket scalping that reveals the public’s willingness to pay far more than primary ticket prices.
                • Fallacies (85%)
                  The author, Pauline Zenker, presents several informal fallacies throughout the article. Firstly, there is an example of a dichotomous depiction where the author claims
                  • There is more competition than ever in the live events market – which is why Ticketmaster’s market share has declined since 2010.
                • Bias (100%)
                  None Found At Time Of Publication
                • Site Conflicts Of Interest (100%)
                  None Found At Time Of Publication
                • Author Conflicts Of Interest (100%)
                  None Found At Time Of Publication