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United States v. Live Nation Entertainment

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United States v. Live Nation Entertainment
CourtUnited States District Court for the Southern District of New York
Full case name United States of America, State of Arizona, State of Arkansas, State of California, State of Colorado, State of Connecticut, District of Columbia, State of Florida, State of Illinois, State of Maryland, Commonwealth of Massachusetts, State of Michigan, State of Minnesota, State of Nevada, State of New Hampshire, State of New Jersey, State of New York, State of North Carolina, State of Ohio, State of Oklahoma, State of Oregon, Commonwealth of Pennsylvania, State of Rhode Island, State of South Carolina, State of Tennessee, State of Texas, Commonwealth of Virginia, State of Washington, State of West Virginia, State of Wisconsin and State of Wyoming v. Live Nation Entertainment, Inc. and Ticketmaster Entertainment, LLC

United States, et al. v. Live Nation Entertainment, Inc. and Ticketmaster Entertainment, LLC is an antitrust lawsuit brought by the U.S. Department of Justice (DOJ) and twenty-nine states and Washington, D.C., against entertainment company Live Nation Entertainment and its subsidiary Ticketmaster, following the Taylor Swift–Ticketmaster controversy in 2022.[1]

Filed on May 23, 2024, the lawsuit alleges that Live Nation has a monopoly on the live event sector.[2] The case was filed before the United States District Court for the Southern District of New York. If successful, Live Nation Entertainment may be forced to sell Ticketmaster.[3]

Background

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Politico reported that the lawsuit followed "years of backlash from consumers, rivals and lawmakers against Ticketmaster and its parent company."[3]

Initial merger (2010)

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In 2009, Live Nation and Ticketmaster announced plans to merge to become the present-day company Live Nation Entertainment. At the time, Ticketmaster had been dominant in ticket sales for over twenty years. Documents obtained by the DOJ found that Live Nation’s entry into the ticketing market in December 2008 posed a threat to Ticketmaster's market share, and the merger effort was announced two months later.[4]

The merger announcement received criticism from artists including Bruce Springsteen and several consumer groups.[5] The DOJ ultimately permitted the merger to proceed, with both parties being required to sign a 10-year consent decree. The agreement was intended to prevent the company from engaging in anti-competitive behavior, including retaliation against independent venues.

Scrutiny since 2010

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Following the merger, Live Nation's Ticketmaster faced allegations that it engaged in anti-competitive behavior that violated the 2010 consent decree. In 2019, the DOJ probed the company over allegations that Live Nation leveraged its dominance in concert touring to coerce venues into signing contracts with Ticketmaster. In December 2019, the DOJ announced that Live Nation Entertainment agreed to amend and strengthen the consent decree.[6]

Following the Taylor Swift–Ticketmaster controversy in 2022, congressional lawmakers urged antitrust action against Ticketmaster.[7] In November 2022, it was reported that the DOJ was conducting an antitrust probe into Ticketmaster's compliance with the 2019 agreement.[8] Politico reported in July 2023 that the DOJ's probe into Ticketmaster had progressed, and that a formal antitrust lawsuit against Live Nation was possible.[9]

Lawsuit developments

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Twenty-nine state attorneys general and the attorney general for the District of Columbia (blue) joined the DOJ in filing the lawsuit on May 23, 2024

On May 23, 2024, the Department of Justice formally announced its antitrust lawsuit against Live Nation Entertainment, accusing the company of illegally monopolizing the live event market.[2] During a news conference, Attorney General Merrick Garland stated "It is time to break it up" in reference to the company. The DOJ's legal team includes over a dozen attorneys under the leadership of Jonathan Kanter, the Assistant Attorney General for the Antitrust Division.[10]

The DOJ was joined in filing the lawsuit by twenty-eight state attorneys general, as well as the attorney general for the District of Columbia.[a][11][12] The DOJ and states are pursuing a jury trial in the case.[3] On August 19, 2024, ten additional state attorneys-general joined the lawsuit, bringing the total number of co-plaintiffs to 40.[b][13]

Public opinion

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A poll conducted by Global Strategy Group in 2023 found that 60% of Americans would support efforts to break up Live Nation's Ticketmaster. The proposal was supported by 72% of Democrats, 50% of Republicans, and 46% of independents.[14]

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Commentators have noted that the lawsuit follows a number of high-profile antitrust lawsuits launched under the Biden administration, including against Apple, Amazon, and Google.[15] Additionally, on May 24, 2024, a day after the DOJ case was filed, a consumer case seeking $5 billion in damages from Live Nation Entertainment on potentially millions of individuals who purchased tickets through Ticketmaster was filed.[16]

Reference

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  1. ^ "U.S. and Plaintiff States v. Live Nation Entertainment, Inc and Ticketmaster L.L.C." Antitrust Division. May 23, 2024. Retrieved May 23, 2024.
  2. ^ a b Michaels, Dave; Steele, Anne (May 23, 2024). "Justice Department Sues to Break Up Live Nation-Ticketmaster". The Wall Street Journal. Retrieved May 24, 2024.
  3. ^ a b c Sisco, Josh (May 23, 2024). "DOJ and states sue Live Nation, could seek breakup of company". Politico. Retrieved May 28, 2024.
  4. ^ Chmielewski, Dawn C.; Fritz, Ben; Lewis, Randy (January 26, 2010). "Ticketmaster-Live Nation merger gets Justice Department's approval". Los Angeles Times. Retrieved May 24, 2024.
  5. ^ Duke, Alan (February 5, 2009). "Ticketmaster-Live Nation talks raise concerns". CNN. Retrieved May 24, 2024.
  6. ^ Sisario, Ben; Kang, Cecilia (December 19, 2019). "Citing Violations, U.S. to Toughen Live Nation Accord on Ticketing". The New York Times. ISSN 0362-4331. Retrieved May 29, 2024.
  7. ^ Cain, Sian (November 24, 2022). "Ticketmaster's Taylor Swift chaos triggers US Senate antitrust hearing". The Guardian. ISSN 0261-3077. Retrieved May 29, 2024.
  8. ^ McCabe, David; Sisario, Ben (November 18, 2022). "Justice Dept. Is Said to Investigate Ticketmaster's Parent Company". The New York Times. ISSN 0362-4331. Retrieved May 29, 2024.
  9. ^ Sisco, Josh (July 28, 2023). "Ticketmaster could face new legal threat this fall, sources say". Politico. Retrieved May 29, 2024.
  10. ^ Scarcella, Mike (May 23, 2024). "US legal team in Live Nation lawsuit includes veteran plaintiffs' attorney". Reuters. Retrieved May 29, 2024.
  11. ^ "Complaint: U.S. and Plaintiff States v. Live Nation Entertainment, Inc. and Ticketmaster L.L.C." United States Department of Justice. May 23, 2024. Retrieved August 19, 2024.
  12. ^ Weatherbed, Jess (May 23, 2024). "The US government is trying to break up Live Nation-Ticketmaster". The Verge. Retrieved May 29, 2024.
  13. ^ "Ten Additional States Join Justice Department's Suit Against Live Nation-Ticketmaster for Monopolizing Markets Across the Live Concert Industry". United States Department of Justice. August 19, 2024. Retrieved August 19, 2024. The department, and its now-expanded group of 40 co-plaintiffs, filed an amended complaint in the Southern District of New York.
  14. ^ Klar, Rebecca (November 14, 2023). "Majority of Americans support breaking up Ticketmaster, Live Nation: Poll". The Hill. Retrieved August 24, 2024.
  15. ^ Nylen, Leah (May 23, 2024). "The US Antitrust Crusade: A Brief Overview of Cases Against Live Nation, Big Tech". Bloomberg. Retrieved May 29, 2024.
  16. ^ Scarcella, Mike (May 24, 2024). "Live Nation ticket buyers sue in wake of US Justice Department case". Reuters. Retrieved May 29, 2024.
  1. ^ The twenty-eight states are as follows: Arkansas, California, Colorado, 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, and Wyoming
  2. ^ The ten states that filed on August 19, 2024 are as follows: Indiana, Iowa, Kansas, Louisiana, Mississippi, Nebraska, New Mexico, South Dakota, Utah and Vermont
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