The United States Department of Justice and 30 states sued Live Nation, the parent company of Ticketmaster, on Thursday alleging antitrust violations and ordering the company to break up.
Live Nation was alleged to run an illegal monopoly over live events through a self-reinforcing “flywheel” business model that locks artists and venues into exclusive contracts. Fans have long complained about hidden fees, difficulty obtaining tickets (most notably, for Taylor Swift concerts — an incident that prompted Congressional hearings, but which came after the DOJ’s launching an investigation into the company), and the lack of alternatives.
If it wins, the DOJ could undo an unpopular 2010 merger between Live Nation and Ticketmaster. Live Nation holds 50% of the market share in concert promotion while Ticketmaster controls more than 80% of primary ticket sales of major US concert venues.
Live Nation strongly denied the allegations in a statement.
