DOJ files sweeping antitrust lawsuit against Ticketmaster and parent company Live Nation

The U.S. Department of Justice has officially filed an antitrust lawsuit against Ticketmaster and its parent company Live Nation for allegedly monopolizing the music and live entertainment industry and driving up ticket prices for fans.

The complaint, filed Thursday in the U.S. District Court for the Southern District of New York, accuses both companies of unlawfully using their power over artists, venues and promoters to thwart competition.

“The result is that fans pay more in fees, artists have fewer opportunities to play concerts, smaller promoters get squeezed out, and venues have fewer real choices for ticketing services,” Attorney General Merrick Garland said in a statement. “It is time to break up Live Nation-Ticketmaster.”

The lawsuit, which is backed by 29 states and Washington, D.C., comes as Ticketmaster and Live Nation have drawn widespread scrutiny over their exorbitant fees for tickets, with prices often far exceeding their face value. Some artists have even resorted to selling tickets in person in order to help fans avoid the high prices and fees that come with online ticket sales.

Live Nation Executive Vice President Dan Wall recently authored a blog called “The Truth About Ticket Prices,” defending his company’s pricing policies by arguing that supply and demand largely dictates ticket prices. The post came as federal officials have discussed implementing new rules eliminating so-called “junk fees,” making companies post their “all-in” price for consumers.

“There is a common perception that service charges are ‘junk fees’ and that Ticketmaster sets the fees and pockets the money,” Wall contended. “Again, that’s not true. Service charges are added to the face value of concert tickets because two important players in the concert ecosystem — venues and primary ticketing companies — get little or nothing out of the revenues derived from the ticket’s face value. That money goes mostly to the performers.”