Taylor Swift performs onstage during night three of "Taylor Swift | The Eras Tour" at La Defense on May 11, 2024 in Paris, France.
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New York CNN —
In our divided nation, it’s a comfort to know that there are still issues that unite more than they divide. Like, ice cream, or Caitlin Clark, or the urge to publicly shame the person who wasn’t prepared to take off their shoes in the airport security line.
On Thursday, the government’s complaint against Live Nation reminded us of one of those things every warm-blooded American knows in their bones: that buying tickets to a major concert or sporting event sucks. Like, so much so it might actually be illegal.
The blame, according to the Justice Department, lies squarely with the corporate behemoth that dominates the live entertainment industry — Live Nation, along with its wholly owned subsidiary, Ticketmaster, which prosecutors say has abused its power to stifle competition, force fans to pay more, and bully artists and venues into using its services.
“Rather than investing in better products and services, we allege that Live Nation has illegally monopolized markets across the live concert industry in the United States for far too long,” Attorney General Merrick Garland said at a news conference Thursday. “It is time to break it up.”
It is difficult to overstate just how thoroughly Live Nation, which acquired Ticketmaster more than a decade ago, controls live entertainment in America.
Per the DOJ complaint:
- Live Nation manages more than 400 musicians, bringing in $22 billion in revenue per year.
- It handles 60% of the promotions at major venues.
- It also directly owns 265 venues in North America, including more than 60 of the top 100 amphitheaters.
- Through Ticketmaster, Live Nation controls 80% of venues’ primary ticketing for concerts.
No rival even comes close.
There’s a fine line between vertical integration and all-out monopoly, and Live Nation is, at minimum, very clearly toeing it.
One nation, under Swift
To be sure, none of this is new. Artists, fans and venues have been complaining about Live Nation and Ticketmaster pretty much since they agreed to merge in 2009.
But it was the awesome rage of the Swifties that finally shook the halls of Congress and got some bipartisan momentum building for federal intervention.
ICYMI: Two years ago, Ticketmaster made an absolute hash of ticket sales for Taylor Swift’s Eras Tour. The Senate hauled Live Nation’s president and CFO in for questioning and scolding. At one point, Sen. Richard Blumenthal congratulated the executive for a “stunning achievement” of bringing together Republicans and Democrats in “an absolutely unified cause.”
Cut to 2024, the Eras Tour is the highest-grossing tour of all time and the federal antimonopoly case against Live Nation has begun. Garland, a noted Swiftie himself, announced the complaint Thursday, saying “we are not here today because Live Nation-Ticketmaster’s conduct is inconvenient, or frustrating. We are here because … that conduct is anti-competitive and illegal.”
Anti-competitive tactics
In its lawsuit, the DOJ takes issue with a bunch of Live Nation’s tactics, but the two big ones to know about are 1) the company’s exclusive contracts with venues and 2) its strong-arming of would-be competitors.
Basically, if you own a venue and choose to work with another promoter or ticketing service besides Live Nation-Ticketmaster, the DOJ claims, you risk serious financial retaliation.
“Live Nation does not have to threaten individual venues explicitly (although it does) to discourage them from signing ticketing contracts with competitors,” the DOJ complaint reads. “The risks are well known in the industry.”
In a statement, Live Nation called the DOJ’s allegations “baseless,” adding that the lawsuit “won’t solve the issues fans care about relating to ticket prices, service fees, and access to in-demand shows.”
Adam Wolfson, an antitrust lawyer with the firm Quinn Emanuel, said the DOJ’s requests for relief hit at the heart of Live Nation’s dominance in ticketing and promotions — specifically, the long-term exclusive deals with venues. If the government can disrupt those deals, it could be a crowbar that lets much smaller rivals like SeatGeek and Eventbrite get a foot in the door.
But don’t expect the ticket-buying process to get better anytime soon.
Live Nation, Wolfson said, is likely to come out swinging.
“I would expect to see a motion to dismiss is the next phase, which then leads to briefing back and forth over a period of months … we’re talking easily a year, two, maybe three years” before there’s a ruling.
