Who owns Live Nation? Monopoly lawsuit filed by DOJ, explained

Live Nation Entertainment and Ticketmaster were recently sued by the Department of Justice on May 23, 2024. DOJ has charged both companies with operating an illegal monopoly and increasing the prices for tickets to different concerts and other events.

The defendants also include attorneys general for 29 states, and the lawsuit was filed at the U.S. District Court for the Southern District of New York. The legal documents stated that the methods of the companies have not been right. Attorney General Merrick Garland explained the same by saying:

"The result is that fans pay more in fees, artists have fewer opportunities to play concerts, small promoters get squeezed out, and venues have fewer real choices for ticketing services. It's time to break up Live Nation."

The lawsuit is seeking a change in the working process of both companies in terms of business and split them into two different companies if needed.

Notably, Live Nation is owned by Michael Rapino, and apart from being the CEO, he has even served as the President since 2005. The company is currently operating in around 40 countries around the world.

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Multiple accusations have been imposed on Live Nation and Ticketmaster

The lawsuit by the DOJ says that the companies violated Section 2 of the Sherman Act through their practices. The department's official website says that the current process of the companies is trying to save a self-reinforcing business model called "flywheel."

NBC News reported that several accusations have been imposed in the lawsuit and it starts with the collaboration of the companies with venue management firm, Oak View Group, to convince the clients and finalize certain deals for the user of Ticketmaster.

Another charge states that the companies attempted to get rid of any kind of competition during concert promotions and took over upstart groups for the same.

The third allegation says that the companies also sign deals that prevent venues from depending upon alternative management companies and using various platforms for tickets.

Another charge says that Ticketmaster has been the default website to bring tickets since Live Nation is in control of a majority of venues where the artists would perform. Speaking on the lawsuit, Deputy Attorney General Lisa Monaco said that it "reflects" the steps taken by DOJ to fight corporate misconduct. Lisa continued:

"Our fight against corporate wrongdoing indicates an intense focus on anticompetitive conduct – which disadvantages consumers, workers, and businesses of all kinds. Today's complaint alleges that Live Nation-Ticketmaster have engaged in anticompetitive conduct to cement their dominance of the live concert marker and act as the gatekeeper for an entire industry."

Acting Associate Attorney General Benjamin C. Mizer said that the DOJ is "committed to competition throughout the economy" and the lawsuit would help to restore competition.

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Live Nation responds to the charges mentioned in the lawsuit

According to NBC News, Live Nation responded to the lawsuit, saying that the defendants would lose the case since they had not considered the rest of the things included in live entertainment, including service fees for venues.

The company claimed that the market share of Ticketmaster has already witnessed a decrease over the years. They further claimed they have the facilities to provide the best prices and services to the public even if both companies are separated as a result of the lawsuit. The statement continued:

"Ticketmaster in particular is a far better, more artist- and fan-focused business under Live Nation's ownership than it ever was as a standalone company. But that's not how this DOJ sees it."

The statement also claimed that the company has taken necessary steps, including the ban on fake tickets, saying that they ensure the protection of fans and artists when it comes to any event.