Staff Reports
Live Nation, a major event promoter, is embroiled in a class-action lawsuit following an investigation by the Department of Justice (DOJ). The lawsuit, initiated by the law firms Robbins Geller Rudman Dowd and Israel David, seeks $5 million in damages for former clients of Ticketmaster, which Live Nation owns. This isn't Ticketmaster's first legal challenge; in 2011, it settled a class-action lawsuit over allegations of overcharging customers.
The DOJ's investigation unveiled claims that Live Nation breached antitrust laws by acquiring rival event promoters and securing exclusionary contracts with venues and artists. Attorney General Merrick Garland highlighted that Live Nation controls 80% of ticket sales for major concert venues, holds contracts with 400 entertainers, and owns or manages 60% of amphitheaters. Consequently, Garland suggested that breaking up the company might be necessary.
In its defense, Live Nation pointed to its modest 1.4% annual net profit and insisted that it does not operate as a monopoly. The company also noted that the Obama administration had approved its acquisition of Ticketmaster. Furthermore, Live Nation's executive vice president, Dan Wall, argued that the lawsuit would not result in lower prices or fees, as those are set by artists and venues.
The lawsuit against Live Nation underscores concerns about antitrust violations and the company's dominance in the event promotion industry. The outcome of this legal dispute could significantly influence future ticket sales and event promotions.
