DOJ May Target Live Nation, Ticketmaster

The Justice Department’s Antitrust Showdown with⁢ Live Nation and Ticketmaster

The Justice Department could be‍ gearing up for an antitrust showdown ⁢with concert⁤ promoter Live ⁢Nation Entertainment and its sister ‌company, Ticketmaster.

Insiders claim that a ‍lawsuit ⁣could be filed by the year’s⁤ end, POLITICO reported. After the news broke, Live Nation’s ⁢shares took a 5% nosedive in extended trading.

The controversy surrounding Live Nation’s‍ ticket sales practices has been‍ a⁢ hot topic among U.S. senators this year, who‌ criticized⁤ the company’s opacity and​ its inability to prevent⁤ ticket bots. This ‍upcoming legal battle ‌could challenge the entertainment behemoth’s dominance in​ the live music ⁤industry.

Details regarding the lawsuit’s timing remain uncertain, ⁤and the DOJ may ultimately‌ decide to ​drop the case. While both Live Nation and the DOJ declined to comment, speculation continues ‍to swirl around what could be a⁤ seismic legal clash. Stay​ tuned for more updates on this story.

The DOJ probe possibility first ​emerged after a debacle over Taylor Swift‍ tickets. ⁢Thousands of fans couldn’t buy the tickets, which quickly appeared on ⁣scalper sites with prices jacked through the roof.

After the Swift ⁤mess, the DOJ announced it was opening an antitrust inquiry into the monopoly,‍ focused on “whether Live Nation Entertainment‌ has abused ⁤its power over the multibillion-dollar ⁤live music industry,”⁢ The New York Times reported ‍last November.

But Democratic Sens. Richard Blumenthal of Connecticut, Amy Klobuchar⁤ of ⁤Minnesota, and Edward J. Markey of Massachusetts wrote a letter to the attorney general saying that’s not enough, noting that “an investigation ⁣alone does nothing⁤ for ⁤the stakeholders already harmed by Live Nation’s market dominance and seemingly ongoing anticompetitive behavior.”

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They said that the company, which controls about 60% of the market ⁤— including many of the biggest venues ‌— “has continued to abuse its ⁣dominant market ⁢position,” adding that “we urge the Department to consider unwinding the Ticketmaster-Live Nation merger and breaking‍ up ⁣the company.”

Rep. ⁤Alexandria Ocasio-Cortez (D-NY) has been a leader on‍ the issue, jumping into the fray after the November sale of Swift tickets turned into a debacle.

“I was watching⁣ what was going‍ on ⁣with⁢ the pre-release of Taylor Swift’s ​tickets,” ⁢she told Rolling Stone.

“It came up on​ a more personal level; I actually⁢ have quite ‍a few staff who ‍were ​trying to get tickets that day. Between seeing their experience and seeing all the people online talking about it, I think it really showed how widespread the problem is and reflects the degree of market consolidation in this industry.”

That’s exactly correct. Ticketmaster and Live Nation‌ merged in 2010, ⁤and it’s been a mess ever since. Ticketmaster controls the tickets, and Live Nation often owns the venue, which means‍ they’ve got you⁤ coming ‌and going.

“One of ‌the things ⁣we’ve been increasingly‍ seeing⁤ is that these price increases because of inflation and abuse of market power are due to market ‌consolidation,” Ocasio-Cortez said. “It’s gotten ​so bad that we’re really seeing it affect our everyday lives, from how much we’re​ paying at grocery stores to not being able to see our​ favorite ⁣artists without​ paying an arm ⁤and a leg.”

About the Author:

Joseph Curl has covered politics for ‌35 years, including⁤ 12 years as White ⁢House correspondent for ​a national newspaper. He ⁢was also the a.m. ⁢editor ‍of the Drudge Report for four years. Send tips to⁢ [email protected] ⁤and follow him on Twitter⁤ @josephcurl.