Live Nation Seeks Dismissal of States' Claims in Antitrust Lawsuit

Live Nation Entertainment requests dismissal of claims by 39 states in an antitrust lawsuit. The company argues that allegations of stifling competition are unrelated to consumer ticket prices.

September 19 2024, 03:49 PM  •  6169 views

Live Nation Seeks Dismissal of States' Claims in Antitrust Lawsuit

On September 19, 2024, Live Nation Entertainment sought to dismiss portions of an antitrust lawsuit filed by the U.S. Department of Justice and a coalition of states. The legal action, initiated in May 2024, alleges that the concert promoter and its ticketing subsidiary, Ticketmaster, illegally inflated concert ticket prices and harmed artists.

Live Nation, formed in 2010 through the merger of Live Nation and Ticketmaster, has become a dominant force in the live entertainment industry. As the world's largest concert promoter, the company organizes over 40,000 shows annually and owns, operates, or has exclusive booking rights for more than 300 venues globally.

The company's request for dismissal focuses on claims from 39 states and the District of Columbia, which joined the lawsuit in August 2024. Two-thirds of these states are seeking triple damages on behalf of event-goers. Live Nation argues that these allegations, which include claims of threats, retaliation, and long-term contracts to prevent venues from using rival ticketing services, are not directly related to consumers or ticket fees.

"The premise of their claim appears to be that in a world in which their marginal costs went down, venues would respond by gratuitously reducing prices for consumers rather than pocketing the incremental profit."

Live Nation's statement in court filing

The company also disputes the claim that it unfairly locks artists into using its concert promoting services to book venues it owns. Live Nation contends that the law does not require it to allow rival concert promoters to rent its amphitheaters.

This legal challenge comes amid growing scrutiny of Live Nation's market dominance. The company's Ticketmaster division processes tickets for over 80% of major venues in the U.S., and its market share in the primary ticketing market is estimated to exceed 70%. This concentration of power has raised concerns about potential anticompetitive practices.

Image

The ongoing lawsuit reflects broader issues in the live entertainment industry. Live Nation's revenue reached a record high of $16.7 billion in 2022, demonstrating its significant market presence. However, the company has faced criticism for its dynamic pricing model, which adjusts ticket prices based on demand, potentially leading to higher costs for consumers.

As the legal proceedings continue, the outcome of this case could have far-reaching implications for the live entertainment industry. The U.S. Department of Justice's investigation into Live Nation's practices, ongoing since 2019, underscores the importance of this case in shaping the future of concert promotion and ticketing.