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Monday, July 22, 2024

Concert Ticket Giants Face DOJ Showdown Over Market Control Allegations

 

DOJ Live Nation Ticketmaster Lawsuit

Without a doubt, Live Nation and Ticketmaster are two of the biggest names in live entertainment, but the U.S. Department of Justice (DOJ) has gone after them. They say that these big shots are unfairly controlling the market. For all music fans who buy concert tickets, this is a big deal because it could completely change how tickets are sold in the future. Alright, let’s get to know a little better about this DOJ Live Nation Ticketmaster Lawsuit, shall we?

What’s the Big Issue?

Big names in the live performance business are Live Nation and Ticketmaster. Live Nation is the king of event marketing, and Ticketmaster is the king of ticket sales. Back in 2009, these two companies chose to merge, making a huge company that ran a big part of the live events and ticket sales market.

In 2010, the DOJ gave the go-ahead for this merger, but they set some rules to make sure everything was fair. A consent deal said that these rules would be in place for ten years. AEG had to be able to use Ticketmaster’s ticketing tool, which was one of the rules. This was done to encourage competition. They also had to sell Comcast-Spectacor a part of their business called Paciolan.

What’s Happening With This DOJ Live Nation Ticketmaster Lawsuit Now?

That was May 23, 2024. On that day, the DOJ and 30 other state and district attorneys general sued Live Nation and Ticketmaster. They claim that these companies unfairly control the market with their power. They say this goes against Section 2 of the Sherman Antitrust Act, which is meant to stop cartels and encourage competition.

There should be two different companies again, according to the DOJ. Another thing they want to do is stop business tactics that hurt competition.

What’s the DOJ Claiming?

The biggest problem for the DOJ is that Live Nation and Ticketmaster have too much power in the live entertainment market. They say that other companies can’t compete with them, which makes ticket prices go up for fans. They also say that American fans have to deal with old ticketing systems and have to pay more for tickets than fans from other countries.

According to another claim, Live Nation and Ticketmaster use their power to make venues, acts, and promoters work only with them. This limits competition and makes it hard for new companies to get into the market.

How Are Live Nation and Ticketmaster Defending Themselves?

Ticketmaster and Live Nation aren’t giving up. They say there is a lot of competition in the market and that since they joined in 2010, their market share has gone down. They also say that their net profit rates are lower than those of many other companies in the same field. This means that ticket sales and service fees don’t make them a lot of money. They say that because they work together rather than as different companies, they can offer better prices and services. Also, they say they’ve followed the rules set by the DOJ in 2010 and even made them stronger in 2019.

 

Parul
Parul
Parul is an experienced blogger, author and lawyer who also works as an SEO content writer, copywriter and social media enthusiast. She creates compelling legal content that engages readers and improves website visibility. Linkedin

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