The US Department of Justice on Thursday sued Ticketmaster and its parent company Live Nation Entertainment, accusing them of operating an illegal monopoly on live events in USA which inhibits competition and inflates prices for event tickets.
The lawsuit was filed in federal court in Manhattan by 30 attorneys general from several states and districts. It seeks to dissolve the monopoly that, according to the complaint, is suffocating smaller promoters, harming artists and drowning fans with endless fees.
“It’s time for fans and artists to stop paying the price for Live Nation’s monopolyAttorney General Merrick Garland said Thursday. “It’s time to restore competition and innovation to the entertainment industry. It’s time to disband Live Nation-Ticketmaster. “The American people are ready for it.”
The Justice Department accuses Live Nation of a series of practices, including threats and retaliation, that Garland says have allowed the entertainment giant “stifling competition”” by controlling virtually every aspect of the industry, from concert promotion to ticket sales. The impact on consumers is seen as “an endless list of charges for fans“said the Secretary of Justice.
“Live music should not be available only to those who can afford to pay Ticketmaster fees”said Deputy Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. ““Today we are here to fight for competition, so we can reopen the doors of the live music industry for everyone.”
For years, Live Nation has denied that it violates antitrust laws and said Thursday that the lawsuit “won’t solve the issues fans care about regarding ticket prices, service charges and access to high-demand shows”.
“Calling Ticketmaster a monopoly may be a good short-term PR strategy for the Justice Department, but it will lose in court because it fails to take into account the basic economics of live entertainment.“he added Live Nation and noted that most of the service charges go to the entertainment centers and that foreign competition has “constantly harmed” Ticketmaster’s market share.
The company said it will defend itself “against these unfounded accusations” and will promote other reforms.
The Justice Department said that the anti-competitive practices of Live Nation They include long-term contracts that prevent theaters from contracting with other ticketing companies, preventing theaters from using more than one ticket seller, and telling theaters they could lose money and fans if they don’t use Ticketmaster.
The Department of Justice says that Live Nation threatened to retaliate against a company if it did not stop a subsidiary from competing for artist endorsement contracts.
Source: Gestion
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