Ticketmaster Fights Antitrust Lawsuit Claiming Lack of Competition Saves Concertgoers Money

Ticketmaster and Live Nation are pushing back against an antitrust lawsuit by seeking to exclude 27 states from the Department of Justice's case. They argue that these states cannot demonstrate direct harm to their residents. The entertainment powerhouse contends that opening up their venues to multiple ticket vendors and promoters could potentially lead to higher ticket prices.

The Legal Battle

Lawyers representing Ticketmaster's parent company appeared in federal court on Wednesday to request the removal of 27 states as plaintiffs in the antitrust lawsuit filed by the Justice Department in May. They claim that these states cannot establish direct harm caused by Live Nation's actions to their residents. The attorneys assert that increased competition may actually result in elevated ticket costs for concert attendees, challenging the states' standing to seek damages without proof of injury.

The Allegations

The lawsuit, which is still in its early stages with no trial date set, aims to dismantle Live Nation, alleging that the company exerts control over 60 out of the nation's top 100 event amphitheaters. According to the lawsuit, artists using these venues are obligated to engage Live Nation's promoters and utilize Ticketmaster as the ticket distributor, creating a monopolistic environment that disadvantages competitors and drives up expenses for artists and fans alike.

State Claims and Counterarguments

The 27 states targeted by Live Nation are seeking triple monetary damages, contending that their residents have suffered from inflated ticket prices due to limited competition. Live Nation's legal team argues that concertgoers are too removed from the alleged monopolistic practices for states to litigate on their behalf. They also assert that the states duplicating federal claims is inefficient.

In response to the notion that increased competition would reduce ticket prices, Live Nation's attorney presented a hypothetical scenario to the judge. The attorney illustrated how allowing rival promoters to bid for access to Live Nation's amphitheaters could lead to higher event costs, challenging the assumption that competition would drive prices down.

Dismissal Motions

Live Nation is also seeking to dismiss a significant portion of the lawsuit that claims artists using Live Nation venues are restricted from employing their own promoters and must utilize Live Nation's services. The Department of Justice argues that this practice violates antitrust laws by forcing artists to use Live Nation for promotion services to access amphitheaters. Live Nation's defense asserts that this is not a tying arrangement but rather a business decision to work exclusively with their promoters.

The judge is expected to rule on Live Nation's dismissal request after final arguments are submitted by both parties. The ongoing legal battle underscores the complex dynamics of competition, pricing, and monopolistic practices in the live entertainment industry.

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By: litaliano@insider.com (Laura Italiano)
Title: Ticketmaster Fights Antitrust Lawsuit Claiming Lack of Competition Saves Concertgoers Money
Sourced From: www.businessinsider.com/ticketmaster-live-nation-antitrust-no-competition-saves-fans-money-2025-1
Published Date: Wed, 22 Jan 2025 22:39:15 +0000