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The Department of Justice wants to cut Live Nation and Ticketmasters set short.
Congress has alsoturned a bipartisan eye toward Live Nation.
Live Nation, meanwhile, has responded by calling the claims absurd and baseless.
Lets make like antitrust lawyers and break thingsupdown:
WhatisLive Nations relationship with Ticketmaster?
Live Nation and Ticketmaster merged in 2010, a move that was also controversial at the time.
Live Nations violations at the time includedclaimsof pressuring venues to use Ticketmaster.
What is the Department of Justice claiming?
At a press conference announcing the lawsuit, Garland stressed that Live Nations conduct wasnt just anti-competitive but illegal.
More specifically, the lawsuit claims five violations of the Sherman Antitrust Act:
1.
Live Nation has a monopoly on primary-ticketing markets.2.
Ticketmasters long-term deals with venues represent exclusive dealing.3.
Live Nation has a monopoly on large amphitheaters.5.
Live Nation has monopolies on concert promotion for both venues and artists.
Twenty-two states additionally claim that Live Nation has violated their antitrust and monopoly laws.
Thats a lot!
Really, it comes down to Live Nations market power over ticketing, venues, and promotions.
The lawsuit zones in on Live Nations own flywheel characterization of its business.
A flywheel is the large wheel that turns other gears or wheels.
Live Nation has claimed that its flywheel is concert promotion, which has a lower margin.
What other allegations does the lawsuit make?
Live Nation has also allegedly used its close relationship to promote Ticketmaster in Oak View Group venues.
(This sure sounds like Ye and Drakes Free Larry Hoover benefit concert.)
After the exchange, Live Nation began routing its concerts away from that venue.
Live Nation also allegedly caused issues with SeatGeeks secondary-ticketing sales for Live Nation artists.
The venue switched back to Ticketmaster in about a year.
(This suresounds likethe Barclays Center.)
These are just a fraction of Live Nations recent acquisitions and deals laid out in the lawsuit.
So what about those ticket fees?
The TICKET Act, whichjust passedin the House of Representatives, also focuses on ticketing fees.
How has Live Nation responded?
Live Nationpublished an essayresponding to the lawsuit, written by executive vice-president of corporate and regulatory affairs Dan Wall.
Wall frames the lawsuit as an act by an overzealous Department of Justice caving to political pressure.
What happens next?
It also calls for monetary relief over Live Nations conduct.
In other words, dont count on concert ticketing changing much for a while.
