Will this translate into cheaper concert tickets? – First post

The U.S. Department of Justice has filed a civil antitrust lawsuit against Live Nation Entertainment Inc and its wholly owned subsidiary, Ticketmaster LLC (Live Nation-Ticketmaster).

The lawsuit alleges monopolization and other illegal conduct that hinders competition in markets in the live entertainment industry.

“We allege that Live Nation relies on unlawful, anticompetitive conduct to exercise its monopoly control over the U.S. live events industry at the expense of fans, artists, smaller promoters and venue operators,” wrote Attorney General Merrick B. Garland, explaining in a statement as to why the Department of Justice filed the lawsuit.

“As a result, fans pay more in fees, artists have fewer opportunities to play shows, smaller promoters are squeezed out and venues have less real choice in ticketing services. It is time to part ways with Live Nation-Ticketmaster,” he added.

According to the lawsuit, Ticketmaster’s illegal practices include using long-term contracts to prevent venues from selecting other ticketing companies, prohibiting venues from using multiple ticket sellers, and threatening venues to choose Ticketmaster by preventing Live Nation artists from performing there. This allegedly grants Ticketmaster and Live Nation an effective monopoly, and the resulting lack of competition allows them to set arbitrarily high prices and fee structures.

The lawsuit could potentially lead to the breakup of Live Nation Entertainment, the company created by Ticketmaster’s 2010 merger with concert promoter Live Nation. Merrick Garland said the goal is to allow for more competition and allow smaller players to capture a larger share of the U.S. ticketing market, of which Ticketmaster controls as much as 70 percent.

Will the Department of Justice’s lawsuit against Ticketmaster and Live Nation bring relief to concertgoers, sports fans and theater patrons from rising ticket prices?

More competition may result in cheaper tickets. However, experts say that live event fans should not expect any changes in the near future.

Does Taylor Swift have anything to do with this?

The confusion caused by the myriad problems Swifties encountered when trying to purchase tickets through Ticketmaster for the 2022 Eras Tour has shed light on the cracks in the US ticketing system.

State attorneys general – 30 of whom joined the Justice Department’s lawsuit – have begun investigating Ticketmaster. Widespread outrage on social media even led to a Senate hearing.

Eleanor Fox, a professor emeritus at New York University School of Law, said the collapse of the entertainment giant, which appeared unable to serve a willing audience, may have helped the Justice Department cement its position, highlighting the extent of Ticketmaster’s dominance.

“I mean, you could say it was unusual that there was so much demand (and that’s what led to the problems), but they knew it would be unusual that there was so much demand,” Fox said. “When there is competition, companies are more sensitive and responsive to problems that may arise.”

Why are ticket prices so high?

Ticket prices have increased for a number of reasons, including a huge increase in demand following the Covid-19 pandemic.

Last month, Live Nation reported that global ticket sales for its top 100 2023 tours were up 46 percent from a year earlier, generating sales worth $9.17 billion (Rs 7,62.89 crore). . Attendance at Living NationThe number of events produced increased by 20 percent last year, to a staggering 145 million.

According to industry publication Pollstar, the average ticket price for the 100 most popular tours in 2023 was $122.84 (Rs 10,220), up 17% from a year earlier and a 31% increase over the average price in 2018.

And as anyone who has tried to get tickets to a popular event knows, service fees and ticket resale can significantly increase prices, in some cases up to thousands of dollars.

In the lawsuit, the Department of Justice alleges that owning a giant company, e.g Living Nation Entertainment tightens margins because it controls a large portion of the market.

What does Ticketmaster say?

Live Nation and Ticketmaster, which have long clashed with artists and fans, have always denied they operate in a monopolistic manner. They claim they are not to blame for the high ticket prices. On Thursday, they said the Justice Department’s lawsuit “will not resolve fans’ concerns about ticket prices, service fees and access to in-demand programming.” They claim that service fees burden concert venues and that external competition “continuously erodes” Ticketmaster’s market share.

What happens next?

Unless dismissed, Thursday’s lawsuit marked the beginning of what will likely be a long process. It can take a year for a trial to start, and then months of arguments before a judge issues a ruling, says NYU School of Law Fox he said.

“And especially if the judge orders a separation, an appeal will be filed,” she added. “So you’re looking at years.”

Are there any other anti-monopoly lawsuits pending?

The government is facing several lawsuits accusing large companies of engaging in illegal monopolies that eliminate competition and inflate prices.

In March, the Department of Justice sued Apple, accusing the technology giant of creating an illegal monopoly in the smartphone market.

Earlier this month, closing arguments were made in the Trump administration’s lawsuit against Google. Federal prosecutors have accused the tech giant of maintaining monopoly status as a search engine.

In September, the Federal Trade Commission sued Amazon, accusing the e-commerce giant of abusing its market position to inflate prices on and off the platform, inflate seller prices and stifle competition. Amazon moved to dismiss the lawsuit in December, but the judge set a hearing date for October 2026.

With inputs from AP