Lawsuit alleges that the company has illegally monopolized the live entertainment industry, particularly ticketing services for concerts
NEWS RELEASE
ATTORNEY GENERAL PHIL WEISER
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DENVER – Attorney General Phil Weiser joined the U.S. Department of Justice and other states today in filing an antitrust lawsuit against Live Nation Entertainment, Inc., which owns Ticketmaster, alleging that the company has illegally monopolized the live entertainment industry, particularly ticketing services for concerts.
According to the federal lawsuit, Live Nation has inserted itself into nearly every aspect of the live music industry, including ticket sales, promotions, marketing, and venues. Live Nation maintains its illegal monopoly through a web of agreements, along with other anticompetitive acts, to make higher profits, stifle competition and innovation in the industry, and thereby harm concertgoers.
For example, Live Nation has maintained its anticompetitive monopoly in the sale and resale of tickets by locking up venues in Colorado and across the country through restrictive long-term, exclusive agreements and threats that venues will lose access to concert tours and artists if they sign with a rival ticketing company. Live Nation also leverages its extensive network of amphitheaters to force artists to select Live Nation as a promoter instead of its rivals, maintaining its promotions monopoly. For this reason, fans attending concerts at Live Nation-controlled amphitheaters get access to fewer shows and see fewer artists than they otherwise would. Artists, meanwhile, are forced to go through Live Nation to reach music lovers, even if they are dissatisfied with Live Nation’s treatment of fans.
Weiser said that because Live Nation faces little competition, fans suffer by paying more for concerts, facing higher fees when purchasing tickets on the primary and secondary markets through Ticketmaster, and losing the benefit of choice and innovation in the market.
“Ticketmaster is the dominant provider of ticketing services in the United States and both fans and artists face extraordinary pressure to use its monopoly,” stated Weiser. “As a result, fans are paying exorbitant prices. This lawsuit calls for opening up competition in ticketing services and preventing Live Nation from using its other assets in ways that undermine competition. It’s time to end Live Nation/Ticketmaster’s anticompetitive tactics and ironclad grip on this market.”
The lawsuit, filed in the U.S. District Court for the Southern District of New York, asks the court to restore competition in the live entertainment industry by prohibiting Live Nation from engaging in its anticompetitive practices and, among other remedies, ordering Live Nation to divest Ticketmaster.
Also joining the DOJ’s lawsuit are the attorneys general of Arizona, Arkansas, California, Connecticut, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and the District of Columbia.
Click here for a copy of the complaint.
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