The Department of Justice is stepping up its antitrust enforcement against Live Nation (LYV), filing a lawsuit on Thursday seeking to break up the entertainment giant.
U.S. prosecutors and state groups allege that Live Nation used Ticketmaster’s ticketing monopoly to stifle competition. The lawsuit follows a two-year investigation into the company.
The lawsuit comes 14 years after the Justice Department approved the Live Nation-Ticketmaster merger. Ticketmaster is the leading provider of ticket sales throughout the United States, processing over 80% of sales. Live Nation, on the other hand, owns and operates hundreds of well-known venues and is a huge concert promoter.
The combined company has long faced criticism from lawmakers and regulators for exorbitant fees, problematic customer service and unfair practices.
Live Nation’s shares fell about 5% after the lawsuit was filed in the Southern District of New York.
“Live Nation relies on illegal and anti-competitive conduct to gain monopoly control over the U.S. live events industry at the expense of fans, artists, small promoters and venue operators,” Attorney General Merrick Garland said in a statement, according to multiple media outlets.
“As a result, fans pay more, artists perform fewer concerts, smaller promoters are squeezed out, and venues have fewer substantial options for ticketing services,” Garland added. . “The time has come to disband Live Nation.”
Live Nation quickly responded to the lawsuit, claiming the allegations were “without merit.”
“The Department of Justice’s complaint seeks to portray Live Nation and Ticketmaster as the source of fan dissatisfaction with the live entertainment industry,” said Dan Wall, Live Nation’s executive vice president of corporate and regulatory affairs.
“This bill blames concert promoters and ticket sales companies, who do not control ticket prices, for the rise in ticket prices. It ignores all the real causes of ticket price inflation, right down to 24/7 online ticket resale, which makes it clear people are willing to pay far more than they should.
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