by Jim Small, Arizona Mirror
May 23, 2024
Arizona is one of 29 states and the District of Columbia that have signed on to a federal lawsuit against Ticketmaster and its parent company, Live Nation, alleging its practices have hurt consumers and venues by monopolizing the live entertainment industry.
“For years, Live Nation’s anti-competitive and monopolistic practices have resulted in Arizonans paying more to see their favorite artists than they otherwise would have,” Arizona Attorney General Kris Mayes said in a written statement. “The uncompetitive live entertainment market created by Live Nation has also left artists and venues without real any choice but to use Live Nation. This lack of competition hurts everyone, from fans to performers – and it’s time to hold Live Nation accountable for its violations of the law.”
The U.S. Department of Justice filed the lawsuit Thursday in the U.S. District Court for the Southern District of New York.
Long-standing complaints about Ticketmaster’s practices hit a peak in 2022 when its botched rollout of Taylor Swift tickets led to a hearing before the U.S. Senate Judiciary Committee on the company’s role in the ticketing industry.
In a statement announcing the lawsuit, Mayes said that Live Nation and Ticketmaster have “illegally monopolized the live entertainment industry, increasing the prices Arizonans pay for live shows.”
The lawsuit asks the court to prohibit Live Nation from engaging in its anticompetitive practices; divest Ticketmaster; and secure financial compensation for New Hampshire, as well as for fans who were overcharged by Live Nation, leading them to pay more than they would have in a competitive market for tickets.
Live Nation said that its profits are minimal and said it expects the DOJ’s lawsuit will fail.
“Calling Ticketmaster a monopoly may be a PR win for the DOJ in the short term, but it will lose in court because it ignores the basic economics of live entertainment, such as the fact that the bulk of service fees go to venues, and that competition has steadily eroded Ticketmaster’s market share and profit margin,” the company said in a written statement.
Dan Wall, the executive vice president of corporate and regulatory affairs for Live Nation Entertainment, said in an emailed statement that the lawsuit is the result of “intense political pressure” and “a long-term lobbying campaign from rivals and ticket brokers” who want the government to protect their interests.
“Every year, competition in the industry drives Live Nation to earn lower take rates from both concert promotion and ticketing. The company is profitable and growing because it helps grow the industry, not because it has market power,” Wall said. “It was evident in our discussions with the DOJ Front Office that they just did not want to believe the numbers. The data conflicted too much with their preconception that Live Nation belongs in the ranks of the other ‘tech monopolists’ they have targeted.”
A spokeswoman for President Joe Biden said he “supports fair and robust enforcement of antitrust laws.”
“The President launched the Strike Force on Unfair and Illegal Pricing because no American should pay higher prices or lose choices because companies break the law and engage in anti-competitive practices. His Administration has taken action to fight corporate greed by banning hidden junk fees—including event tickets—that unfairly increase prices for hardworking families trying to make ends meet,” White House Press Secretary Karine Jean-Pierre said in a written statement. “As the President has said, the American people are tired of being played for suckers.”
***UPDATE: This story has been updated with a comment from Joe Biden’s press secretary.
Arizona Mirror is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Arizona Mirror maintains editorial independence. Contact Editor Jim Small for questions: info@azmirror.com. Follow Arizona Mirror on Facebook and Twitter.
