He US government He denounced the company this Thursday Live Nationowner of the sales portal tickets Ticketmaster, with the aim of ending the illegal monopoly that the company has exercised in recent years, the consequences of which are suffered by both consumers and artists and promoters.
The Department of Justice, along with 30 state and district attorneys general, filed a civil antitrust lawsuit in the United States District Court for the Southern District of New York for “monopolization and other illegal conduct that frustrates competition in the markets.”
The lawsuit was announced at a press conference by the US attorney general, Merrick Garland, in which he assured that “exorbitant rates and technological failures” of the company “they have been criticized by both fans and artists” but that the demand is not motivated by this, but because the company’s practices are “anti-competitive and illegal.”
Through a statement, the company denied these practices and said it was “another victim” of the Biden Administration’s decision to “handing over antitrust enforcement to a populist impulse” that does not seek to end monopolies, but rather “It’s just anti-business.”
A wide demand
The accusations against Live Nation are broad and range from blocking competition to charging exorbitant commissions to consumers, who end up paying gold prices (sometimes several thousand dollars) for tickets to concerts and other shows.
Garland stated that the company “blocks competition and ticket sales through the use of exclusive contracts” sales that can last more than a decade and also with the acquisition of their own places, among other practices.
It also uses these agreements and the control of the venues to “illegally pressure artists to agree to use their promotional services” and also “has worked strategically and illegally to eliminate the threat of potential rivals emerging in any of its businesses.”
Live Nation controls at least the 80% from ticket sales in the main concert halls; directly manages more than 400 artists; controls more than 60% of concert promotions nationwide and owns or controls more than 60% of the great amphitheaters in the United States, says Garland.
In addition, Ticketmaster imposes a list “endless” buyer fees: ticketing fees, service fees, convenience fees, Platinum fees, master order pricing fees, handling fees, and payment processing fees, among others.
This situation, adds the prosecutor, results in “fans pay more” and “Artists have fewer opportunities to play concerts”while “Smaller promoters are left out and venues have fewer real options for ticketing services.”
Taylor Swift, the straw that broke the camel’s back
Live Nation has been under close scrutiny for months, including by the US Congress, especially after the company canceled the public sale of Taylor Swift tickets in November 2022 because there was too much demand and insufficient remaining inventory to meet it.
The company had to respond to the Senate Judiciary Committee to explain what happened, which angered millions of people.Swifties’, followers of the popular artist, and Swift herself.
Ticketmaster blamed cyber attacks for what happened and made it clear that they do not set ticket prices or decide how many go on sale or when.
Last June, Live Nation pledged to be more transparent with the prices it charges its customers, an apparent response to pressure from Biden, and decided to display the final price of tickets at the beginning of a transaction, rather than at the end. final.
The lawsuit against the company is one of the most important competition cases filed during the Biden Administration and joins others filed against technology giants such as Apple, Amazon and Google.
Specifically, the lawsuit alleges that Live Nation-Ticketmaster violates Section 2 of the Sherman Act, which prohibits conspiracies that unreasonably restrain trade and agreements among competitors to fix prices or wages, rig bids, or allocate customers, workers, or markets.
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Source: Gestion
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